Required information Exercise 12-11 Indirect: Preparing statement of cash flows LO P1, P2, P3, A1 The following information applies to the questions displayed below) The following financial statements and additional information are reported. Part 3 of 3 1.25 points Conparative Balance Sheets June 30, 2017 and 2016 2017 2016 eBook $95,500 95,000 83,800 6,400 280,70o 144,000 64,000 71,000 116,500 9,400 260,900 135,000 Accounts receivablc, net Inventory Total current assets Equipment Accun. depreciation Equipment Total assets Liabilities and Equity Accounts Wages payable Income taxes payable Total current liabilities sotes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total 1iabilities and equity 01 19,0001 $387,700 376,900 payable $ 45,000 60,000 19,000 5,400 r800 B,000 References 50,000 108,400 80,000 166,800 180,000 19,30030:100 $387,700 376,900 260,000 KIBAN IN Incone Statenent For Year Ended June 30, 2017 Cost of goods sold Groas profit operating expensea $778,000 431,000 347,000 Depreciation expense $78, 600 Other expenses Total operating expenses 165,600 181,400 other gains (losses) Gain on sale of equipment Incone before taxes Inconme taxes expense Set income $139,510 Additional Information 4 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. e.. H:lve r.vy,ipliiesrit a3 "inxi tuw Si//ME) '.nat d. Received cash for the sale of equipment that had cost $68,600, yielding a $4,000 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. Part 3 of 3 1.25 points eBook Exercise 12-128 Direct: Preparing statement of cash flows LO P1, P3, P5 Using the direct method, prepare the statement of cash flows for the year ended June 30, 2017. (Amounts to be deducted should be indicated with a minus sign.) Hint Print Statement of Cash Flows (Direct Method) For Year Ended June 30, 2017 References 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