Required:

(1) Prepare a statement of cash flows for the year ended June 30, 2017, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

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 $100,90e$55,000 62,000 103,000 7,600 227, 600 126,000 81,500 74,800 5,500 262,700 135,000 (32, 5e0) (14,500) $365,20e $339,100 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 $ 36,00046,500 17,200 7,100 4,500 47,600 41,000 88,600 69,700 71,000 140,700 171,000 27,400 $365,20e $339,100 242,000 34,600 Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $733,000e 422,000 311,000 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 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. For Year Ended June 30, 2017 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities 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