The following financial statements and additional information are reported. IKIBAN INC Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash Accounts receivable, net Inventory Prepaid expense:s Total current assets Equipmemt Accum. depreciation-Equipment Total assets $ 94,300 66,000 73,000 85,800 119,500 9,800 284,700 268,300 146,000 137,000 98,000 6,600 38,000 (20,000) $392,700 $385,300 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 $ 47,000 63,000 19,400 8,200 90,600 8,200 5,600 60,800 52,000 2209 82,000 112,800 172,600 264,000 182,000 15990 30,700 $392,700 $385,300 KBAN INC Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $788,000 433,000 355,000 Depreciation expense $80,600 89,000 Other expenses Total operating expenses 169,690 185,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 4,200 189,600 46,090 $143,518 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 paid. c. New equipment is acquired for $79,600 cash. d. Received cash for the sale of equipment that had cost $70,600, yielding a $4,200 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. 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.) IKIBAN, INC Statement of Cash Flows (Direct Method) For Year Ended June 30, 2017 Cash flows from operating activities Net income 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