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.)

Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation Equipment Total assets $ 96,100 63,000 70,000 115,000 9,200 257,200 134,000 (18,500) 93,500 82,800 6,300 278,700 143,000 (36,500) $385,200 372,700 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 $ 44,000 58,500 18,800 7,600 84,900 79,000 163,900 7,900 5,300 57,200 49,000 106,200 179,000 29,800 $385,200 372,700 258,000 21,000 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses 773,000 430,000 343,000 77,600 86,000 Depreciation expense Other expenses Total operating expenses 163,600 179,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,900 183,300 45,790 $ 137,510 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 $76,600 cash. d. Received cash for the sale of equipment that had cost $67,600, yielding a $3,900 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