[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 2016 2017 Assets $100, 300 56,000 Cash Accounts receivable, net 75,800 104, 500 Prepaid 5,600 7,800 penses Total curront Equipment Accum. depreciation-Equipment 231,300 264, 700 136,000 (33,000) assets 127,000 (15,000) $367,700 $343,300 Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable $ 37,000 $48,000 7,200 17,400 6,200 4,600 Total current liabilities 48,800 71,600 72,000 143,600 Notes payable (long term) 42, 000 Total liabilities 90,800 Equity Common stock, $5 par value Retained earnings 244,000 32,900 27,700 Total liabilities and equity $367,700 $343,300 IKIBAN INC. Tncome Statement IKIBAN INC. Income Statement For Year Ended June 30, 2017 $738,000 423, 000 Sales Cost of goods sold Gross profit Operating expenses 315,000 Depreciation expense Other expenses Total operating expenses $70,600 79,000 149,600 165,400 Other gains (losses) Gain on sale of equipment 3,200 168,600 Income before taxes 45,090 Income taxes expense Net income $123,510 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 $69,600 cash d. Received cash for the sale of ec ment that had cost $60,600, yielding a $3,200 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 minus sign.) Answer is not complete. IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 Cash flows from operating activities $ 123,510 Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash 70,600 Depreciation expense Gain on sale of plant assets (3,200) Changes in current operating assets and liabilities Increase in accounts receivable (20,000) Decrease in inventory 28,700 Decrease in prepaid expenses 2,200 Decrease in accounts payable (11,000) Decrease in wages payable (10,200) Decrease in income taxes payable (1,600) Required information Decrease in wages payable (10,200) Decrease in income taxes payable (1,600) Net cash provided by operating activities 179.010 Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment (69,600) (69,600) Net cash used in investing activities Cash flows from financing activities Cash received from stock issuance Cash paid to retire notes Cash paid for dividends Net cash used in financing activities 0 Net increase (decrease) in cash Cash balance at prior year-end 109.410 $ Cash balance at current year-end 109,410