Required information Exercise 12-11 Indirect: Preparing statement of cash flows LO P1, P2, P3, A1 [The following information applies to the questions displayed belowj 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 $103,900 $ 50,000 57,000 95,500 6,600 209,100 121,000 12,000 $352,700$318,100 74,000 69,800 5,000 252,700 130,000 30,000 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 earnin s 31,000 39,000 16,200 5,000 60,200 66,000 126,200 6,600 4,000 41,600 36,000o 77,600 232,000 43,100 166,000 25,900 gs $352,700 318,100 Total liabilities and equity IKIBAN INC Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $708,000 417,000 291,000 Depreciation expense Other expenses $64,600 73,000 Total operating expenses 137,600 153,400 Other gains (losses) Gain on sale of equipment 2,600 Gain on sale of equipment 2,600 156,000 44,490 $111,510 Income before taxes Income taxes expense 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 $63,600 cash. d. Received cash for the sale of equipment that had cost $54,600, yielding a $2.600 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 Exercise 12-11 Part 1 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 Statement of Cash Flows (Indirect Method) 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