Use the following information for the Exercises below [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, 2018 and 2017 2018 2017 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets $ 85,700 69,500 66,800 4,700 226,700 127,000 47,000 54,000 91,000 6,000 198,000 118,000 (28,500) (10,500) $325,200 $305,500 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 $ 28,000 34,500 15,600 4,400 54,500 63,000 117,500 6,300 3,700 38,000 33,000 71,000 226,000 28,200 163,000 25,000 $325,200 $305,500 IKIBAN INC. Income Statement For Year Ended June 30, 2018 Sales Cost of goods sold Gross profit Operating expenses $693,000 414,000 279,000 $61,600 70,000 Depreciation expense Other expenses Total operating expenses 131,600 147,400 other gains (losses) 2,300 149,700 44,190 $105,510 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 $60,600 cash. d. Received cash for the sale of equipment that had cost $51,600, yielding a $2,300 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 Indirect: Preparing statement of cash flows (Part 1) LO P1, P2, P3, A1 Required: (1) Prepare a statement of cash flows for the year ended June 30, 2018, 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, 2018 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting caslh Changes in current operating assets and liabilities 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