art 2 - Problems i 2016 $ 66,000 73,000 119,500 9,800 268,300 137,000 (20,000) $385,300 IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 Assets Cash $ 94,300 Accounts receivable, net 98,000 Inventory 85,800 Prepaid expenses 6,600 Total current assets 284,700 Equipment 146,000 Accum. depreciation-Equipment 120,000 Total assets $392,700 Liabilities and Equity Accounts payable $ 47,000 Wages payable 8,200 Income taxes payable 5,600 Total current liabilities 60,800 Notes payable (long term) 52.000 Total liabilities 112,800 Equity Common stock, $5 par value 264,000 Retained earnings 15,900 Total liabilities and equity $392,700 $ 63,000 19,400 8,200 90,600 82,000 172,600 182,000 30,700 $385,300 $788,000 433,000 355,000 IKIBAN INC. Income Statement Tor Year Ended June 30, 2017 Sales Cont of goods sold Gross profit Operating expenses Depreciation expense $80, 600 Other expenses 89,000 Total operating expenses Other gains (lossen) Gain on sale of equipment Income before taxes Income taxes expense Net income 169,600 185,400 4200 189,600 46090 $143,510 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 $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 1. 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 Not income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities 0 Cash flows from investing activities Cash flows from financing activities 0 0 $ Net Increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 0