The options are:

• Cash paid for dividends
• Cash paid for equipment
• Cash paid for income taxes
• Cash paid for operating expenses
• Cash paid to retire notes
• Cash received from customers
• Cash received from sale of equipment
• Cash received from stock issuance
• Decrease in accounts payable
• Decrease in accounts receivable
• Decrease in income taxes payable
• Decrease in inventory
• Decrease in prepaid expenses
• Decrease in wages payable
• Depreciation expense
• Gain on sale of plant assets
• Increase in accounts payable
• Increase in accounts receivable
• Increase in income taxes payable
• Increase in inventory
• Increase in prepaid expenses
• Increase in wages payable
• Loss on sale of plant assets

Required information [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 2017 2016 $ 87,500 65,000 63,800 4,400 220,700 124,000 (27,000) $317,700 $ 44,000 51,000 86,500 5,400 186,900 115,000 (9,000) $292,900 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 $ 25,000 6,000 3,400 34,400 30,000 64,400 $ 30,000 15,000 3,800 48,800 60,000 108,800 220,000 33,300 $317,700 160,000 24,100 $292,900 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $58,600 Other expenses 67,000 Total operating expenses $678,000 411,000 267,000 125,600 141,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,000 143,400 43,890 $ 99,510 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 $57,600 cash. d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 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.) 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.) Answer is not complete. IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 Cash flows from operating activities Net income $ 99,510 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 58,600 Loss on sale of plant assets (2,000) Decrease in accounts receivable (14,000) Changes in current operating assets and liabilities Decrease in inventory 22,700 Decrease in prepaid expenses 1,000 Decrease in accounts payable (5,000) Decrease in wages payable (9,000) Decrease in income taxes payable (400) $ 151,410 Net cash provided by operating activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment 10,000 (57,600) (47,600) Cash flows from financing activities Cash received from stock issuance Cash paid to retire notes Cash paid for dividends 60,000 (30,000) (90,310) $ Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end (60,310) 43,500 44,000 87,500 $