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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 $ 93,700

The following financial statements and additional information are reported.

IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016
2017 2016
Assets
Cash $ 93,700 $ 67,000
Accounts receivable, net 99,500 74,000
Inventory 86,800 121,000
Prepaid expenses 6,700 10,000
Total current assets 286,700 272,000
Equipment 147,000 138,000
Accum. depreciationEquipment (38,500 ) (20,500 )
Total assets $ 395,200 $ 389,500
Liabilities and Equity
Accounts payable $ 48,000 $ 64,500
Wages payable 8,300 19,600
Income taxes payable 5,700 8,400
Total current liabilities 62,000 92,500
Notes payable (long term) 53,000 83,000
Total liabilities 115,000 175,500
Equity
Common stock, $5 par value 266,000 183,000
Retained earnings 14,200 31,000
Total liabilities and equity $ 395,200 $ 389,500

IKIBAN INC. Income Statement For Year Ended June 30, 2017
Sales $ 793,000
Cost of goods sold 434,000
Gross profit 359,000
Operating expenses
Depreciation expense $ 81,600
Other expenses 90,000
Total operating expenses 171,600
187,400
Other gains (losses)
Gain on sale of equipment 4,300
Income before taxes 191,700
Income taxes expense 46,190
Net income $ 145,510

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 $80,600 cash.

Received cash for the sale of equipment that had cost $71,600, yielding a $4,300 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
Net income
Depreciation expense
Increase in accounts receivable
Decrease in merchandise inventory
$0
Cash flows from investing activities
0
Cash flows from financing activities
Net income
0
Net increase (decrease) in cash $0
Cash balance at prior year-end
Cash balance at current year-end $0

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