Using the direct method prepare a statement of cash flows

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 $ 96,100 63,000 70,000 115,000 9,200 257,200 134,000 93, 500 82,800 6, 300 278, 706 143,000 (36,500)(18, 59 $385,200 372,700 Liabilities and Equity Accounts payable Wages payable Income taxes payable lotal current Liab1l1ties Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $44,000 7,900 5, 300 57,200 49,000 106,200 58,500 18,800 7,600 84,900 79,000 163,900 179,000 29,800 $385,200 $372,700 258,000 21,000 Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $773,008 430,000 343,000 $77,600 86,000 Depreciation expense Other expenses Total operating expenses 163,600 179,400 Other gains (losses) 3,900 183,300 45,790 $137,516e 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 $76,600 cash d. Received cash for the sale of equipment that had cost $67,600, yielding a $3,900 gairn e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement f. All purchases and sales of inventory are on credit 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