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. Comparative Balance Sheets June 30, 2017 and 2016 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets 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 $ 98,500 59,000 66,000 109,000 8,400 242,400 130,000 87,500 78,800 5,900 270,700 139,000 (34,500) (16, 500) $375,200 $355,900 40,000 52,500 7,500 18,000 6,800 77,300 45,00075,000 152, 300 4,900650 52,400 97,400 250,000 175,000 28,600 $375,200 $355,900 27,800 IKIBAN INC Income Statement For Year Ended June 30, 2017 Sales Cost of aoods $753,000 426.000 sold Prey 1 of 1 Next MacBook Air $753,000 426,000 327,000 Sales t of goods sol Gross profit Operating expenses Depreciation expense Other expenses $73,600 82,000 155,600 171,400 Total operating expenses Other gains (losses) 3,500 174,900 45,390 $129,510 Gain on sale of equipment Income before taxes ncome taxes expense Net income Additional Information a. A $30,000 note payable is retired at its $30,000 carrying (book) value b. The only changes affecting retained earnings are net income and cas c. New equipment is acquired for $72,600 cash. d. Received cash for the sale of equipment that had cost $63,600, yield e. Prepaid Expenses and Wages Payable relate to Other Expenses on t f. All purchases and sales of inventory are on credit. ise 12-11 Part 1 ed: pare a statement of cash flows for the year ended June 30, 2017, using icated with a minus sign.) For Year Ended June 30, 2017 Cash flows from operating activities s 129,510 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 Increase in inventory Decrease in accounts payable Decrease in prepaid expenses Cash paid for income taxes Decrease in wages payable 73,600 (3,500) (21,500) $ 178,110 Cash flows from investing activities Cash flows from financing activities Prev 1 of 1 MacBoolk