[The following information applies to the questions displayed below The following financial statements and additional information are reported Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets $ 94,900 65,8e0 72,800 118,800 9,600 282,780 264,680 145,000 136,800 96,588 84,880 6,500 (37, 500) (19,580) $390,200 $381,100 Liabilities and Equity Accounts payable Wages payable Income taxes payable S 46,800 61,5e0 19,280 8,800 8,180 5,500o 59,600 51,000 400 88,700 Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 81,800 169,780 110,600 262,000 181,800 30,480 17,600 $390,200 $381,100 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $783,000 432,000 351,000 Depreciation expense $79,600 88,000 Other expenses Total operating expenses 167,600 183,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense 4,100 187,500 45.990 Prey 12 13 of otai apiiities ana equity IKIBAN INC Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $783,600 432,000 351,880 Depreciation expense $79,600 88,800 Other expenses Total operating expenses 167,608 183,480 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 4,100 187,500 45,990 $141,510 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 $78,600 cash d. Received cash for the sale of equipment that had cost $69,600, yielding a $4,100 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 Exercise 12-11 Part 1 Required: (1) Prepare a statement of cash flows for the year ended June 30, 2017, using the indirect method (Amour be indicated with a minus sign.) IKIBAN, INC Prey12 13 of 13 Required information Hequirea: (t) Prepare a statement of cash flows for the year ended June 30, 2017, using the indlirect method (Amounts to be Indicated with a minus sign.) Statement of Cash Flows (Indirect Method For Year Ended June 30, 2017 Cash flows from operating activities S 141,510 Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense Gain on sale of plant assets Increase in accounts receivable Changes in current operating assets and liabilities Decrease in inventory Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable $ 141,510 Net cash provided by operating activities Cash flows from investing activities Cash flows from financing activities Net cash used in financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end 141,510