The following financial statements and additional information are reported.

IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016
	2017				2016
Assets
Cash	$	101,500			$	54,000
Accounts receivable, net		80,000				61,000
Inventory		73,800				101,500
Prepaid expenses		5,400				7,400
Total current assets		260,700				223,900
Equipment		134,000				125,000
Accum. depreciation?Equipment		(32,000	)			(14,000	)
Total assets	$	362,700			$	334,900
Liabilities and Equity
Accounts payable	$	35,000			$	45,000
Wages payable		7,000				17,000
Income taxes payable		4,400				5,800
Total current liabilities		46,400				67,800
Notes payable (long term)		40,000				70,000
Total liabilities		86,400				137,800
Equity
Common stock, $5 par value		240,000				170,000
Retained earnings		36,300				27,100
Total liabilities and equity	$	362,700			$	334,900

The following financial statements and additional information are reported.

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 $67,600 cash.

d. Received cash for the sale of equipment that had cost $58,600, yielding a $3,000 gain. a 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.)

Assets Cash IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation- Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $101,500 80,000 73,800 5,400 $ 35,000 7,000 4,400 2016 260,700 223,900 134,000 125,000 (32,000) (14,000) $362,700 $334,900 46,400 40,000 86,400 $ 54,000 61,000 101,500 7,400 $ 45,000 17,000 5,800 67,800 70,000 137,800 240,000 170,000 36,300 27,100 $362,700 $334,900 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $68,600 77,000 $728,000 421,000 307,000 145,600 161,400 3,000 164,400 44,890 $119,510