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.] 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 96,100 63,000 70,000 82,800 115,000 6,300 9 200 278,700 257,200 134,000 93,500 143,000 36,500) (18,500) $385,200 $372,700 Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total 1iabilities 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 49,000 106,200 258,000 21,000 179,000 29,800 $385,200 $372,700 Equity Common stock, $5 par value Retained earnings Total liabilities and equity 258,000 21,000 179,000 29,800 $385,200 $372,700 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 Depreciation expense $77,600 86,000 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 $67600, yielding a $3,900 gain. e. Prepaid Expenses and Wages Paya f. All purchases and sales of inventory are on credit ble relate to Other Expenses on the income statement. Required information 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 Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense Gain on sale of plant assets Increase in accounts receivable Changes in current operating assets and liabilities Cash flows from investing activities 0 Required information 0 Cash flows from investing activities Cash flows from financing activities 0 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end 0