Required Information Exercise 16-11 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 IN. . Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash $100,300 $ 56,680 Accounts receivable, net 83,899 63,ese Inventory 75,899 184,500 Prepaid expenses 5,600 7,880 Total current assets 264, 700 231,300 Equipment 136,000 127,ese Accum. depreciation-Equipment (33,808) (15,680) Total assets $367,798 $343,300 Liabilities and Equity Accounts payable $ 37,99 $ 48,000 Wages payable 7,200 17,488 Income taxes payable 4,600 6,280 Total current liabilities 48,800 71,600 Notes payable (long term) 42,000 72.ee Total liabilities 90,800 Equity Common stock, $5 par value 244,000 172,000 Retained earnings 32,999 27,790 Total liabilities and equity $367,708 $343,300 143,600 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $78,680 Other expenses 79, eee Total operating expenses $738,080 423,eee 315, ee 149,680 165, 480 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,280 168.688 45,090 $123,510 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 $69.600 cash. d. Received cash for the sale of equipment that had cost $60,600. yielding a $3,200 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. Exercise 16-11 Part 1 Required: 1) Prepare a statement of cash flows for the year ended June 30, 2017, using the indirect method (Amounts to be deducted should e Indicated with a minus slgn.) IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities $ 0 Cash flows from investing activities 0 Cash flows from financing activities 0 s 0 Net increase (decrease) in cash Cash balance at prior year-end