Required information Exercise 12-11 Indirect: Preparing statement of cash flows LO P1, P2, P3, A1 [The following information applies to the questions displayed below.] reported The following financial statements and additional information are IKIBAN INC Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets $106,300 68,000 65,800 4,600 244,700 126,000 Cash 46,000 53,000 89,500 5,800 Accounts receivable, net Inventory Prepaid expenses Total current assets 194,300 117,000 Equipment Accum. depreciation-Equipment (28,000) $342,700 (10,000) $301,300 Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable 27,000 6,200 3,600 36,800 32,000 33,000 15,400 4,200 52,600 Total current liabilities Notes payable (long term) 62,000 114,600 Total liabilities 68,800 Equity Common stock, $5 par value Retained earnings 162,000 24,700 $301,300 224,000 49,900 $342,700 Total liabilities and equity IKIBAN INC. Income Statement For Year Ended June 30, 2017 $688,000 413,000 275,000 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses $60,600 69,000 129,600 145,400 Other gains (losses) sale of equipment 2,200 Gain on Income before taxes 147,600 44,090 $103,510 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 $59,600 cash d. Received cash for the sale of equipment that had cost $50,600, yielding a $2,200 gain. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit. e. Exercise 12-12B Direct: Preparing statement of cash flows LO P1, P3, P5 Using the direct method, prepare the statement of cash flows for the year ended June 30, 2017. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2017 Cash flows from operating activities Cash received from customers 0 Cash flows from investing activities 0 Cash flows from financing activities 0 Net increase (decrease) in cash Cash balance at prior year-end 0 Cash balance at current year-end 0