Required information Exercise 12-11 Indirect: Preparing statement of cash flows LO P1, P2, P3, A1 IThe 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 s 98,500 59,0ee 66,000 87,500 78,800109,0ee 8,400 ,242,400 130,000 16,500 5,900 270,700 139,000 34,500 $ 375,200$355, 900 Liabilities and Equity Accounts payable s 40,000 52,500 18,000 6,800 77,300 75,000 152,300 Wages payable Income taxes payable Total current liabilities Notes payable (long term) 7,500 4 900 52,400 45,000 97,400 Total liabilities Equit IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $753,000 426,000 327,000 Depreciation expense 73,600 82,000 Other expenses Total operating expenses 155,600 171,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,500 174,900 45,390 $129,510 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 $72.600 cash d. Recelved cash for the sale of equipment that had cost $63.600, yielding a $3,500 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement f. All purchases and sa es of inventory are on credit. Exercise 12-128 Direct: Preparing statement of cash flows LO P1, P3, P5 3or3 Using the direct method, prepare the statement of cash flows for the year ended June 30, 2017 (Amounts to be deducted shoul indicated with a minus sign.) nts IKIBAN, INC Statement of Cash Flows (Direct Method) For Year Ended June 30, 2017 eBook Hint Print Cash flows from operating activities Cash received from customers Cash pald for inventory Cash paid for operating expenses Cash pald for income taxes $731500 (383.300) References $ 348 200 Net cash provided by financing activities sh flows from investing activities sh received from sale of equipment Next > S P