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 $103,900 5e,000 74,000 69, 800 5,000 252,700 130,000 57,000 Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets 95,500 6,600 209,100 121,000 (30,000) (12,000) $352,700 $318,100 Liabilities and Equity Accounts payable Wages payable 31,000 6, 6e0 4,000 41,600 36,000 39,000 16,200 5,000 60,200 66,000 Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 7,680126,20 232,e00 166,eoe $352,700 $318,100 43,100 25,900 IKIBAN INC . Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $768,000 417,000 291,00 Depreciation expense Other expenses Total operating expenses $64,600 73,000 7137,60 153,400 2.600 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 156,600 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. 1) Prepar a statement of cash flows for the year ended June 30, 2017, using the indir be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense Gain on sale of plant assets Decrease in accounts receivable Changes in current operating assets and liabilities ok nt nt ences 0 Cash flows from investing activities CO Required information 3 Cash flows from investing activities ook Hint Print Cash flows from financing activities ferences 0 0 Net increase (decrease) in casth Cash balance at prior year-end Cash balance at current year-end 0