Required information [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 $ 96,100 $ 63,000 Accounts receivable, net 93,500 70,000 Inventory 82,800 115,000 Prepaid expenses 6,300 9,200 Total current assets 278,700 257,200 Equipment 143,000 134,000 Accum. depreciationEquipment (36,500 ) (18,500 ) Total assets $ 385,200 $ 372,700 Liabilities and Equity Accounts payable $ 44,000 $ 58,500 Wages payable 7,900 18,800 Income taxes payable 5,300 7,600 Total current liabilities 57,200 84,900 Notes payable (long term) 49,000 79,000 Total liabilities 106,200 163,900 Equity Common stock, $5 par value 258,000 179,000 Retained earnings 21,000 29,800 Total liabilities and equity $ 385,200 $ 372,700 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales $ 773,000 Cost of goods sold 430,000 Gross profit 343,000 Operating expenses Depreciation expense $ 77,600 Other expenses 86,000 Total operating expenses 163,600 179,400 Other gains (losses) Gain on sale of equipment 3,900 Income before taxes 183,300 Income taxes expense 45,790 Net income $ 137,510 Additional Information A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. The only changes affecting retained earnings are net income and cash dividends paid. New equipment is acquired for $76,600 cash. Received cash for the sale of equipment that had cost $67,600, yielding a $3,900 gain. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. All purchases and sales of inventory are on credit. rev: 06_20_2017_QC_CS-91585, 12_05_2017_QC_CS-111198 Required: (1) Prepare a statement of cash flows for the year ended June 30, 2017, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)