Using the direct method prepare the statement of cash flows for the year ended June 30, 2017.

worki Saved The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2016 2017 Assets $ 47,000 54,000 91,000 $105,700 69,500 66,800 Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment 4,700 6,000 246,700 127,000 (28,500) $345,200 198,000 118,000 (10,500) $305,500 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 $ 28,000 6,300 3,700 38,000 33,000 $ 34,500 15,600 4,400 54,500 63,000 117,500 71,000 226,000 48,200 163,000 25,000 Total liabilities and equity $345,200 $305,500 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales $693,000 Coet nf nonde cold IKIBAN INC. Income Statement For Year Ended June 30, 2017 $693,000 414,000 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense 279,000 $61,600 70,000 Gher expenses 131,600 Total operating expenses 147,400 other gains (los ses) Gain on sale of equipment Income before taxes Income taxes expense 2,300 149,700 44,190 $105,510 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 $60,600 cash. d. Received cash for the sale of equipment that had cost $51,600, yielding a $2,300 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 information For Year Ended June 30, 2017 Cash flows from operating activities 3 Cash received from customers Cash paid for operating expenses Cash paid for income taxes Cash paid for dividends $ 0 Net cash provided by operating activities Cash flows from investing activities Gain on sale of plant assets ces Net cash used in investing activities 0 Cash flows from financing activities Cash received from stock issuance Cash paid to retire notes Cash paid for dividends Net cash used in financing activities 0 Net increase (decrease) in cash $ Cash balance at prior year-end Cash balance at current year-end 0