The following financial statements and additional Information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2018 and 2017 2018 2017 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity $ 78,500 87, See 78,880 5,900 250, 700 139,000 (34,500) $355,200 $ 59,880 66,880 189,880 8,480 242,400 130,000 (16,580) $ 355,990 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 $40.800 7,5ee 4,900 52,400 45,000 97,400 $ 52,500 18,00 6,800 77, 300 75,800 152,300 250,000 7,880 $355,200 175,000 28.688 $355,900 IKIBAN INC. Income Statement For Year Ended June 30, 2018 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $73,620 Other expenses 82,800 Total operating expenses $753,899 426,000 327, 155,600 171,480 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,580 174,900 45, 390 $129,510 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 pald. c. New equipment is acquired for $72,600 cash. d. Received cash for the sale of equipment that had cost $63,600, yielding a $3,500 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. (1) Prepare a statement of cash flows for the year ended June 30, 2018, using the indirect method (Amounts to be deducted should be Indicated with a minus slgn.) 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 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