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The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash $ 102,100

The following financial statements and additional information are reported.

IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016
2017 2016
Assets
Cash $ 102,100 $ 53,000
Accounts receivable, net 78,500 60,000
Inventory 72,800 100,000
Prepaid expenses 5,300 7,200
Total current assets 258,700 220,200
Equipment 133,000 124,000
Accum. depreciationEquipment (31,500 ) (13,500 )
Total assets $ 360,200 $ 330,700
Liabilities and Equity
Accounts payable $ 34,000 $ 43,500
Wages payable 6,900 16,800
Income taxes payable 4,300 5,600
Total current liabilities 45,200 65,900
Notes payable (long term) 39,000 69,000
Total liabilities 84,200 134,900
Equity
Common stock, $5 par value 238,000 169,000
Retained earnings 38,000 26,800
Total liabilities and equity $ 360,200 $ 330,700

IKIBAN INC. Income Statement For Year Ended June 30, 2017
Sales $ 723,000
Cost of goods sold 420,000
Gross profit 303,000
Operating expenses
Depreciation expense $ 67,600
Other expenses 76,000
Total operating expenses 143,600
159,400
Other gains (losses)
Gain on sale of equipment 2,900
Income before taxes 162,300
Income taxes expense 44,790
Net income $ 117,510

Additional Information

  1. A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash.
  2. The only changes affecting retained earnings are net income and cash dividends paid.
  3. New equipment is acquired for $66,600 cash.
  4. Received cash for the sale of equipment that had cost $57,600, yielding a $2,900 gain.
  5. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
  6. All purchases and sales of inventory are on credit.

(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.)

image text in transcribed

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

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