Required information The following information applies to the questions displayed below.j 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 $102,700 52,000 59,000 98,500 5,200 000 216,500 123,000 77,000 71,800 256,700 132,000 (13,000) $357,700 326,500 Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earningS Total liabilities and equity$357,700 $326,500 $ 33,000 42,000 16,600 5,400 64,000 68,000 132,000 6,800 4,200 44,000 38,000 6 82,000 236,000 168,000 26,500 39,700 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $718,000 419,000 299,000 Depreciation expense $66,600 Other expenses 75,000 Total operating expenses 141,600 157,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,800 160,200 44,690 $115,510 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 $65,600 cash. d. Received cash for the sale of equipment that had cost $56,600, ylelding a $2,800 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. Using the direct method, prepare the statement of cash flows for the year ended June 30, 2017. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2017 Cash flows from operating activities 0 Cash flows from investing activities 0 Cash flows from financing activities 0 0 Net increase (decrease) in caslh Cash balance at prior year-end Cash balance at current year-end 0