Required information The following information applies to the questions displayed below] The following financlal statements and additional Information are reported. KIBAN INC Comparative alance Sheet June 30, 2017 and 2016 2016 Assets $ 87,500 65, 000 63,800 4, 400 44,000 51,000 B6, 500 5,400 Accounts receivable, net Total current 55et 115,000 (27,000) (9, 000) $317,700 $292,900 124, 000 Total asset Liabilities and Equity Accounts payable Nages payable Income taxes payable Total current liabilitie Notes payable (long term) Total 1iabilities Equity Coumon stoc, $5 par value s 25,000 30,000 15,000 3, 800 34, 400 , B00 60,000 6,000 3, 400 30,000 64,4 220,000 160,000 33,300 24,100 $317, 700 $292, 900 Total liabilities and equity KIBAN INC Income Statement For Year Ended June 30, 2017 ales $678, 000 411,000 261,00 Cost of goods sold profit Operating expenes $58, 600 67,000 Depreciation expense Other expenses Total operating expenses Other gains (los3es) 125, 600 141,400 Gain on sale of equipment Income before taxes Income taxes expense Net income 2,000 143,400 43, B90 $ 99, 510 a. A $30,000 note payable is retired at its $30,000 carrying (book) value In exchange for cash. b. The only changes affecting retalned eamings are net Income and cash dividends pald. C. New equlpment is acquired for $57600 cash. d. Recelved cash for the sale of equipment that had cost $48,600, ylelding a $2000 gain. e. Prepald Expenses and Wages Payable relate to Other Expenses on the Income statement. f All purchases and sales of Inventory are on credit. (1) Prepare a statement of cash flows for the year ended June 30, 2017, using the Indire 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 5 99,510 58,800 Gain on sale of plant assets (2,000) Changes in current operating assets and liabilities Increase in accounts receivabl Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable (14,000) 1,000 (5,000) (9,000) (400) Net cash provided by operating activities 5128,710 Cash flows from investing activities (9,500) (57,800) Cash received from sale of equipment Cash paid for equipment (87,100) Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-e Cash balance at current year-end 81,810 end