[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, 2018 and 2017 2018 2017 $ 78,500 87,500 78,800 5,900 250, 700 139,000 (34,500) $355,200 $ 59,900 66,000 109,000 8,400 242,400 130,000 (16,500) $355,900 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 $ 40,000 7,500 4,900 52,400 45,000 97,400 $ 52,5ee 18,000 6,800 77, 300 75,000 152,300 250,000 7,800 $355,260 175,000 28, 600 $355, 900 IKIBAN INC. IKIBAN INC. Income Statement For Year Ended June 30, 2018 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $73,6ee Other expenses 82,080 Total operating expenses $753,000 426,000 327, Bee 155,600 171,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3.See 174,900 45,390 $129,510 Additional Information 0 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 $72.600 cash. d. Received cash for the sale of equipment that had cost $63,600. Vielding a $3.500 gan 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, 2018. using the Indirect method (Amounts to be del