The following financial statements and additional information are reported.

IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016
	2017				2016
Assets
Cash	$	94,900			$	65,000
Accounts receivable, net		96,500				72,000
Inventory		84,800				118,000
Prepaid expenses		6,500				9,600
Total current assets		282,700				264,600
Equipment		145,000				136,000
Accum. depreciationEquipment		(37,500	)			(19,500	)
Total assets	$	390,200			$	381,100
Liabilities and Equity
Accounts payable	$	46,000			$	61,500
Wages payable		8,100				19,200
Income taxes payable		5,500				8,000
Total current liabilities		59,600				88,700
Notes payable (long term)		51,000				81,000
Total liabilities		110,600				169,700
Equity
Common stock, $5 par value		262,000				181,000
Retained earnings		17,600				30,400
Total liabilities and equity	$	390,200			$	381,100

IKIBAN INC. Income Statement For Year Ended June 30, 2017
Sales				$	783,000
Cost of goods sold					432,000
Gross profit					351,000
Operating expenses
Depreciation expense	$	79,600
Other expenses		88,000
Total operating expenses					167,600
					183,400
Other gains (losses)
Gain on sale of equipment					4,100
Income before taxes					187,500
Income taxes expense					45,990
Net income				$	141,510

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 $78,600 cash.
4. Received cash for the sale of equipment that had cost $69,600, yielding a $4,100 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.

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 Net income $ 141,510 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 79,600 Gain on sale of plant assets Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable S 221,110 Net cash provided by operating activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment 12,100 (78,600) (66,500) Net cash used in investing activities Cash flows from financing activities Cash received from stock issuance Cash paid for dividends Cash paid to retire notes 81,000 (154,310) (30,000) (103,310) 51,300 S Net cash used in financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 51,300