The following financial statements and additional information are reported. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 47,000 91, eee $1e5,700 69,50 66,80 4,788 246,708 127,000 (26 500 345, 280 198,00 de 500 $385,500 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation Equipment Total assets 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 $34,500 15.600 28.000 5.388 3,700 38,88 54, 559 63,ese 112,560 71,080 226,000 48,200 $345,200 163,000 25,000 $385,500 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $61,600 Other expenses 70,000 Total operating expenses $693,000 414,eee 279,000 131,600 147,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,300 149,700 44,190 $105,510 Additional Information 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 $60,600 cash. d. Received cash for the sale of equipment that had cost $51600. yielding a $2.300 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. Required: (1) Prepare a statement of cash flows for the year ended June 30, 2017, using the Indirect method. (An deducted should 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 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities Cash flows from investing activities . Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end