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 Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets $103,900 50,000 57,000 95,500 74,000 69,800 6,600 209,100 121,000 (30,000) (12,000) $352,700 $318,100 5,000 252,700 136,000 Liabilities and Equity Accounts payable $ 31,000 39,e00 16,200 5,000 60, 200 66,000 77,600 126,260 Wages payable Income taxes payable Total current liabilities Notes payable (long term) 6,600 4,000 41,600 36,000 Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 232,000 166, 609 43,100 25,960 $352,700 $318,100 IKIBAN INC Income Statement For Year Ended June 30, 2017 Sales Cost of goods solo Gross profit Operating expenses $708,00e 417,000 291,600 Depreciation expense Other expenses $64,600 73,000 137,60e 153,489 Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,600 156,800 44,490 $111,510 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 $63,600 cash. d. Received cash for the sale of equipment that had cost $54,600, yielding a $2,600 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. Required information Statement of Cash Flows (Direct Met For Year Ended June 30, 2017 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end