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Part 1 of 2 Required information Use the following information for the Exercises below. (The following information applies to the questions displayed below) The following financial statements and additional information are reported. points 2017 19 IKIBAN INC. Comparative Balance Sheets June 30, 2018 and 2017 2018 Assets Cash $ 87,500 Accounts receivable, net 65,000 Inventory 63,800 Prepaid expenses 4,400 Total current assets 220,700 Equipment 124,000 Accum. depreciation-Equipment (27,800) Total assets $317,700 Liabilities and Equity Accounts payable $ 25,000 Wages payable 6,000 Income taxes payable 3,480 Total current liabilities 34,400 Notes payable (long tern) 30,000 Total liabilities 64,400 Equity Common stock, $5 par value 220, 880 Retained earnings 33,300 Total liabilities and equity $317,780 $ 44,000 51,000 86,500 5,400 186,900 115,000 9,880) $292,900 lo References $30,000 15,000 3,800 48,888 68,000 198,800 160,000 24,100 $292,900 Total liabilities and equity $317,700 $292,900 IN IKIBAN INC. Income Statement For Year Ended June 30, 2018 Sales $678,000 Cost of goods sold 411,000 Gross profit 267,000 Operating expenses Depreciation expense $58,600 Other expenses 67,000 Total operating expenses 125,600 141,400 Other gains (losses) Gain on sale of equipment 2,000 Income before taxes 143,400 Income taxes expense 43,890 Net income $ 99,510 Additional Information . 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 pald. c. New equipment is acquired for $57,600 cash. d. Received cash for the sale of equipment that had cost $48,600, yielding a $2.000 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. Required information ml. Part 1 of 2 IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2018 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash 15 points eBook Changes in current operating assets and liabilities Hint . Print o References Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 0