The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2018 and 2017 2018 2017 $ 87,500 65,000 63,800 4,400 220,700 124,000 (27,000 $317,700 $ 44,000 51,000 86,500 5,400 186,990 115,000 (9,600) $292,900 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets 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 $ 25,000 6,000 3,400 34,400 30,000 64,400 $ 30,000 15,000 3,800 48,800 60,000 108,800 220,000 33,300 $317,700 160,000 24,100 $ 292,900 IKIBAN INC. Income Statement For Year Ended June 30, 2018 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $58,609 Other expenses 67,000 Total operating expenses $678,000 411,000 267,000 125,600 141,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,000 143,400 43,890 $ 99,510 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 $57,600 cash. d. Received cash for the sale of equipment that had cost $48,600. yielding a $2,000 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. xercise ISI INPC ! Pnarinn STATemer Orrantin IPA IUI Required information Hyuncu. (1) Prepare a statement of cash flows for the year ended June 30, 2018, using the indirect method.( be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2018 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 S Required information 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