KIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets $99,700 57,00e Cash Accounts receivable, net Inventory Prepaid expenses 84,500 76,800 106,000 5,700 266,700 235,000 137,000 128,000 (33,500)(15, 50e) $370,200 $347,500 64,000 8,000 Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities 38,000 49,500 7,300 4,700 50,000 17,600 6,400 73,500 Notes payable (long term) 43,000 22973,000 93,000 146, 500 Total liabilities Equity Common stock, $5 par value Retained earnings 246,000 173,000 31,200 28,000 Total liabilities and equity $370, 200 $347,500 Income Statement For Year Ended June 3e, 2017 $743,000 424,000 319,000 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses $71,600 80,000 151,600 167,400 Other gains (losses) Gain on sale of equipment 3,300 Income before taxes 170,700 45,190 Income taxes expense $125,518 Net income Additional Information a. A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $70,600 cash. d. Received cash for the sale of equipment that had cost $61,600, yielding a $3,300 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement f. All purchases and sales of inventory are on credit Depreciation expense 71,600 Gain on sale of plant assets (3,300) Changes in current operating assets and liabilities Increase in accounts receivable (20,500) Decrease in inventory 29,200 Decrease in prepaid expenses 2,300 Decrease in accounts payable (11,500) Decrease in income taxes payable (1,700) Decrease in wages payable (10,300) 181,310 Net cash provided by operating activities Cash flows from investing activities (70,600) Cash paid for equipment Cash received from sale of equipment Cash paid for income taxes Net cash used in investing activities (70,600) Cash flows from financing activities Cash paid to retire notes (30,000)