The following financial statements and additional information are reported.

IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016
	2017				2016
Assets
Cash	$	93,100			$	68,000
Accounts receivable, net		101,000				75,000
Inventory		87,800				122,500
Prepaid expenses		6,800				10,200
Total current assets		288,700				275,700
Equipment		148,000				139,000
Accum. depreciationEquipment		(39,000	)			(21,000	)
Total assets	$	397,700			$	393,700
Liabilities and Equity
Accounts payable	$	49,000			$	66,000
Wages payable		8,400				19,800
Income taxes payable		5,800				8,600
Total current liabilities		63,200				94,400
Notes payable (long term)		54,000				84,000
Total liabilities		117,200				178,400
Equity
Common stock, $5 par value		268,000				184,000
Retained earnings		12,500				31,300
Total liabilities and equity	$	397,700			$	393,700

IKIBAN INC. Income Statement For Year Ended June 30, 2017
Sales				$	798,000
Cost of goods sold					435,000
Gross profit					363,000
Operating expenses
Depreciation expense	$	82,600
Other expenses		91,000
Total operating expenses					173,600
					189,400
Other gains (losses)
Gain on sale of equipment					4,400
Income before taxes					193,800
Income taxes expense					46,290
Net income				$	147,510

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 $81,600 cash.

Received cash for the sale of equipment that had cost $72,600, yielding a $4,400 gain.

Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.

All purchases and sales of inventory are on credit.

IKIBAN, INC.
Statement of Cash Flows (Direct Method)
For Year Ended June 30, 2017
Cash flows from operating activities
Cash received from customers answer correct
Cash flows from investing activities
		0
Cash flows from financing activities
Cash paid for dividends answer correct
		0
Net increase (decrease) in cash		$
Cash balance at prior year-end		$
Cash balance at current year-end		$