Problem Solving Homework Saved Required information The following information applies to the questions displayed below. The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $100,900 55,000 62,000 74,800 103,000 7, 600 227,600 135,000 126,00e 81,500 5,590 262,700 (32,500) (14, 500) $365,200 339,100 $ 36,000 7,100 4,500 47,600 41,000 88,600 46,500 17,200 6,000 69,700 71,000 140,700 242,000171,000 34,680 27,400 $365,200 $339,100 IKIBAN INC Income Statement For Year Ended June 30, 2017 Sales Cost of goods solod Gross profit Operating expenses $733,000 422,008 311,000 Depreciation expense $69,600 78,000 Other expenses Total operating expenses 147,600 163,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,100 166, 500 44,990 $121,510 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 $68,600 cash. d. Received cash for the sale of equipment that had cost $59,600, yielding a $3,100 gair. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement f. All purchases and sales of inventory are on credit. e. . Required: (1) Prepare a statement of cash flows for the year ended June 30, 2017, using the be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 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 121,510 Changes in current operatng assets and liabilities Required information Changes in current operating assets and liabilities S 121,510 Cash flows from investing activities Cash flows from financing activities Required information S 121,510 Cash flows from investing activities 0 Cash flows from financing activities 121,510 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end 121,510