he following financial statements and additional information arereported. IKIBAN INC. Comparative Balance Sheets June 30, 2017 and2016 2017 2016 Assets Cash $ 99,100 $ 58,000 Accounts receivable,net 86,000 65,000 Inventory 77,800 107,500 Prepaid expenses 5,8008,200 Total current assets 268,700 238,700 Equipment 138,000129,000 Accum. depreciation—Equipment (34,000 ) (16,000 ) Totalassets $ 372,700 $ 351,700 Liabilities and Equity Accounts payable$ 39,000 $ 51,000 Wages payable 7,400 17,800 Income taxes payable4,800 6,600 Total current liabilities 51,200 75,400 Notes payable(long term) 44,000 74,000 Total liabilities 95,200 149,400 EquityCommon stock, $5 par value 248,000 174,000 Retained earnings 29,50028,300 Total liabilities and equity $ 372,700 $ 351,700 IKIBAN INC.Income Statement For Year Ended June 30, 2017 Sales $ 748,000 Costof goods sold 425,000 Gross profit 323,000 Operating expensesDepreciation expense $ 72,600 Other expenses 81,000 Total operatingexpenses 153,600 169,400 Other gains (losses) Gain on sale ofequipment 3,400 Income before taxes 172,800 Income taxes expense45,290 Net income $ 127,510 Additional Information A $30,000 notepayable is retired at its $30,000 carrying (book) value in exchangefor cash. The only changes affecting retained earnings are netincome and cash dividends paid. New equipment is acquired for$71,600 cash. Received cash for the sale of equipment that had cost$62,600, yielding a $3,400 gain. Prepaid Expenses and Wages Payablerelate to Other Expenses on the income statement. All purchases andsales of inventory are on credit. rev: 06_20_2017_QC_CS-91585,12_05_2017_QC_CS-111198 Required: (1) Prepare a statement of cashflows for the year ended June 30, 2017, using the indirectmethod.
