The following financial statements and additional information are reported.

Required information [The following information applies to the questions displayed below.) The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash $105, 100 $ 48,000 Accounts receivable, net 71,000 55,000 Inventory 67,800 92,500 Prepaid expenses 4,800 6,200 Total current assets 248, 700 201,700 Equipment 128,000 119,000 Accum. depreciation- (29,000) Equipment (11,000) Total assets $347,700 $309,700 Liabilities and Equity Accounts payable $ 29,000 $ 36,000 Wages payable 6,400 15,800 Income taxes payable 3,800 4,600 Total current liabilities 39,200 56,400 Notes payable (long term) 34,000 64,000 Total liabilities 73,200 120,400 Equity Common stock, $5 par value 228,000 164,000 Retained earnings 46,500 25,300 Total liabilities and $347,700 $309,700 equity IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales $698,000 Cost of goods sold 415,000 Gross profit 283,000 Operating expenses Depreciation $62,600 expense Other expenses 71,000 Total operating 133,600 expenses 149,400 Other gains (losses) Gain on sale of 2,400 equipment Income before taxes 151,800 Income taxes 44,290 expense Net income $107,510 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 $61,600 cash. d. Received cash for the sale of equipment that had cost $52,600, yielding a $2,400 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. 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 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