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. Part 1 of 3 1.25 points 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 $106,300 46,000 53,000 B9,500 5,800 194,300 117,000 10.000 $342,700 $301,300 04:06:03 68,000 65,800 4, 600 244,700 126,000 28,000 eBook Liabilities and Equity Accounts payabl Nages payable Income Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $ 27,000 6,200 3,600 36,800 33,000 15,400 4,200 52,600 Hint taxes payable 32,00062.000- 800114,600 Print 162,000 24,700 $342,700 $301,300 224,000 49,900 Re erences IKIBAN INC Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $688,000 413,000 275,000 Depreciation expense $60,600 Other expenses Total operating expenses 690 129,600 145,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,200 147,600 44,090 $103,510 References 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. Recelved cash for the sale of equipment that had cost $50,600, ylelding a $2,200 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