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 $105,100 71,000 67,800 4,800 248,700 128,000 48,000 55,000 92,500 6,200 201,700 119,000 (29,000(11,000) $347,700 $309,700 Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $ 29,000 6,400 3,800 39,200 34,000 73,200 36,000 15,800 4,600 56,400 64,000 120,400 164,000 25,300 $347,700 $309,700 228,000 46,500 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $698,000 415,000 283,000 $62,600 71,000 Depreciation expense Other expenses 133,600 149,400 Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,400 151,800 44,290 $107,510