Required Information Use the following information for the Exercises below. (The following information applies to the questions displayed below.) The following financial statements and additional information are reported. 2017 IKIBAN INC. Comparative Balance Sheets June 30, 2018 and 2017 2018 Assets Cash $ 77,300 Accounts receivable, net 90.500 Inventory BO,800 Prepaid expenses 6.100 Total current assets 254,700 Equipment 141,000 Accum. depreciation-Equipment ( 35,500) Total assets $360,200 Liabilities and Equity Accounts payable $ 42,000 Wages payable 7,700 Income taxes payable 5, 100 Total current liabilities 54,800 Notes payable (long term) 47,000 Total liabilities 101,800 Equity Common stock, $5 par value 254,000 Retained earnings 4.400 Total liabilities and equity $360,200 $ 61,000 68,000 112,000 8.800 249.900 132,000 (17,500) $364,300 $ 55,500 19.400 7.200 B1, 100 77.000 158, 100 177,000 29, 200 $364,300 IKIBAN INC. Income Statement For Year Ended June 30, 2018 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $75,600 Other expenses 84.000 Total operating expenses $763,000 428,000 335,000 159, 600 175,400 3,700 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 179, 100 45, 590 $133,510 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 pald. c. New equipment is acquired for $74,600 cash. d. Received cash for the sale of equipment that had cost $65,600, yielding a $3,700 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. Exercise 12-11 Indirect: Preparing statement of cash flows (Part 1) LO P1, P2, P3, A1 Required: 11) Prepare a statement of cash flows for the year ended June 30, 2018, using the indirect method (Amounts to be deducted should be indicated with a minus sign.) Statement or casniows (Indirect Method) For Year Ended June 30, 2018 Cash flows from operating activities Net income $ 133,510 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 75,600 Gain on sale of plant assets ................. Changes in current operating assets and liabilities S 209,110 Cash flows from investing activities Cash flows from financing activities 209.110 Net increase (decrease) in cash Cash balance at prior year-end