The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets $ 52,000 59,000 98,500 7,000 216,500 123,000 Cash $102,700 Accounts receivable, net Inventory Prepaid expenses Total current assets 77,000 71,800 5,200 256,700 132,000 (31,000) $357,700 Equipment Accum. depreciation-Equipment (13,000) $326,500 Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities payable (long term) $ 42,000 16,600 5,400 64,000 68,000 $ 33,000 6,800 4,200 44,000 38,000 82,000 Notes Total liabilities Equity Common stock, $5 par value Retained earnings 132,000 236,000 39,700 $357,700 168,000 26,500 Total liabilities and equity $326,500 IKIBAN INc. Income Statement For Year Ended June 30, 2017 $718,000 419,000 299,000 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses $66,600 75,000 141,600 157,400 Other gains (losses) Gain on sale of equipment 2,800 160,200 44,690 Income before taxes Income taxes expense $115,510 Net income 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 $65,600 cash. d. Received cash for the sale of equipment that had cost $56,600, yielding a $2,800 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. (Amounts to be 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 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2017. Cash Flow on Total Assets Ratio Choose Choose Numerator: Cash Flow on Total Assets Ratio Denominator: Cash flow on total assets ratio %3D %3D 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 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