The following financial statements and additional information are reported. Exercise 16-11 Indirect: Preparing statement of cash flows P1 P2 P3 A1 O IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Assets Cash Accounts receivable, net. Inventory Prepaid expenses. Total current assets ............... Equipment................. Accum. depreciation-Equipment........... Total assets $ 87,500 65,000 63,800 4.400 220,700 124.000 (27,000) $317.700 $ 44,000 51,000 86,500 5.400 186,900 115.000 19.000) $292,900 $678,000 411,000 267,000 Sales ... Cost of goods sold Gross profit. Operating expenses Depreciation expense ................ Other expenses................... Total operating expenses............. $58,600 67,000 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.................. $ 25,000 6,000 3,400 34,400 30,000 64,400 $30,000 15,000 3,800 48,800 60,000 108,800 125,600 141,400 Other gains (losses) Gain on sale of equipment .. Income before taxes Income taxes expense Net income.. . 2,000 143,400 43,890 $ 99,510 220,000 33,300 $317.700 160,000 24,100 $292.900 703 Chapter 16 Reporting the Statement of Cash Flows 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 $57,600 cash. Received cash for the sale of equipment that had cost $48,600. yielding a $2,000 gain. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. 6. All purchases and sales of inventory are on credit. Check (1) Cash paid for dividends. $90,310 (10) Cash received from equip. sale, $10,000 Required 1. Prepare a statement of cash flows for the year ended June 30, 2017, using the indirect method. 2. Compute the company's cash flow on total assets ratio for its fiscal year 2017. Refer to the information in Exercise 16-11. Using the direct method, prepare the statement of cash flows for the year ended June 30, 2017. Exercise 16-12" Direct: Preparing statement of cash flows P1 P3 P5