[The following information applies to the questions displayed below.j The following financial statements and additional information are reported IKIBAN INC. 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 $100,300 56,000 63,000 75,800 104,500 7,800 264,700 231,300 127,000 83,000 5,600 136,000 (33,000) (15,000) $367,700 $343,300 Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities 48,800 Notes payable (long term) 42,000 Total liabilities Equity Common stock, $5 par value Retained earnings Totalliabilities and equity $ 37,000 48,000 17,400 6,200 71,600 72,000 7,200 4,600 90,800 143.60 244,000 172,000 32,90027,700 $367,700 $343,300 IKIBAN INC Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $738,000 423,000 315,000 Depreciation $70,600 79,000 expense Other expenses Total operating expenses 149,600 165,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,200 168,600 45,090 $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 equipment 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 a minus sign.) IKIBAN, INC Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense Cash received from sale of equipment Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable Net cash provided by investing activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment Net cash used in financing activities Cash flows from financing activities Cash paid for dividends Cash paid to retire notes Cash received from stock issuance Net cash used in financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end (2) Compute the company's cash flow on total assets ratio for its fiscal year 2017. Cash Flow on Total Assets Ratio Choose Denominator: Cash Flow on Total Assets Ratio Choose Numerator: Operating cash flows /Average total assetsCash flow on total assets ratio 0 Using the direct method, prepare the statement of cash flows for the year ended June 30, 2017. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2017 Cash flows from operating activities Cash flows from investing activities 0 Cash flows from financing activities 0 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end 0