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

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.)