The following Tinancial statements and additional information are reported. IKIBAN INC ComparativeBalance 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 $ 94,300 98,000 85,800 6,600 284,700 146,000 66,000 73,000 119,500 9,800 268,300 137,000 (38,000) (20,000) $392,700$385,300 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 1iabilities and equity $ 47,000 8,200 5,600 60,800 52,000 112,800 63,000 19,400 8,200 90,600 82,000 172,600 182,000 30,700 $392,700 $385,300 264,000 15,900 IKIBAN INC Income Statement For Year Ended June 30, 2017 $788,000 433,000 355,000 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $80,600 89,000 Other expenses Total operating expenses 169,600 185,400 Other gains (losses) 4,200 189,600 46,090 $143,510 Gain on sale of equipment Income before taxes Income taxes expense Net income 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 $79,600 cash. d. Received cash for the sale of equipment that had cost $70,600, yielding a $4,200 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 ncome statement items not affecting cash Changes in current operating assets and liabilities 0 Cash flows from investing activities 0 Cash flows from financing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end 0 0 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2017. Cash Flow on Total Assets Ratio Choose Numerator: Choose Denominator: Cash Flow on Total Assets Ratio = Cash flow on total assets ratio 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 Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end