Required information [The following information applies to the questions displayed below.] The following financial statements and additional information are reported. 2016 IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 Assets Cash $ 93,100 Accounts receivable, net 101,000 Inventory 87,800 Prepaid expenses 6,800 Total current assets 288,700 Equipment 148,000 Accum. depreciation-Equipment (39,000) Total assets $397,700 Liabilities and Equity Accounts payable $ 49,000 Wages payable 8,400 Income taxes payable 5,800 Total current liabilities 63,200 Notes payable (long term) 54,000 Total liabilities 117,200 Equity Common stock, $5 par value 268,000 Retained earnings 12,500 Total liabilities and equity $397, 700 $ 68,000 75,000 122,500 10,200 275,700 139,000 (21,000) $393,700 $ 66,000 19,800 8,600 94,400 84,000 178,400 184,000 31,300 $393,700 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 82,600 Other expenses 91,000 Total operating expenses $ 798,000 435,000 363,000 173,600 189,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense 4,400 193,800 46,290 $147,510 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 $81,600 cash. d. Received cash for the sale of equipment that had cost $72,600, yielding a $4,400 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 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 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 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