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Prepare a statement of cash flows for the year ended June 30, 2017, using the indirect method.

RTBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 Assets Cash Accounts receivable, net Inventory 96,100 63,000 93,500 82,800 115, 000 6,300 Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable 9,200 278.700 257,200 143,000 134,000 $385,200 $372,700 (36,500) (18,500) 44,000 58,500 7,900 18,800 5,300600 84,900 49,000 79,000 106,200 163,900 Income taxes payable Zotal curzent liabilities 57,200 Notes payable (long term) Total liabilities Common stock, $5 par value Retained earninge 258,000 179,000 21,00029,800 Total liabilities and equity $385,200 $372,700 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Salea $773,000 Cost of goode sold Operating expenses Other expenses Cross profit 343,000 77,600 Depreclation expense Total operating expenacs Other gains (loases) 63, 600 179, 400 Cain on sale ot equi pment Saved 0 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $773,000 430,000 343,000 Depreciation expense Other expenses $77,600 86,000 163,600 179,400 Total oporating expenses Other gains (losses) Gain on salo of equipment Income before taxes Income taxes expense Net income 183,300 $137,510 Additional Information note r 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 $67600, yielding a $3,900 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 t be indicated with a minus sign.) 2 4

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