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 QS 16-9 Computing financing cash flows LO P3 The following selected Information is from Princeton Company's comparative balance sheets. At December 31 Common stock, $10 par value Paid-in capital in excess of par Retained earnings 2017 2016 $ 133,880 $ 124,288 591, eee 354,000 337,580 311,500 The company's net Income for the year ended December 31, 2017, was $60,000. 1. Complete the T-accounts to calculate the cash received from the sale of its common stock during 2017. Answer is not complete. Beg. bal. Issuance of common stock Common Stock, $10 Par 124,000 9,000 End. bal. 133,000 Beg. bal. Issuance of common stock Paid-in Capital in Excess of Par 354,000 237.000 End. bal. 591,000 Cash received 2. Complete the T-account to calculate the cash paid for dividends during 2017. Answer is not complete. Beg. bal. 2017 Net income Retained Earnings 311,500 60,000 34,000 405.500 2017 dividends End. bal