Required information IThe following information applies to the questions displayed below.
The following financial statements and additional information are reported.
IKIBAN INC
Comparative Balance Sheets
Tune 30, 2018 and 2017
2018 2017
assets
cash $ 73,100 68, 000
Account receivabie, net 101,000 75,000
Inventory 87,800 122,500
Prepaid expenses 6,800 10,200
Total current ssets 268,700 275,700
Equipnent 148,000 139,000
Accum. depreciation Equipment 39,0001 21,000
Total assets $377,700 393,700
Liabilities and Equity 63,200 268,000
Accounts payable $ 49,000 66,000
Hages payable 8,400 19, 800
Income taxes payable 5,800 8600
Total current liabilities 63,200 94,400
Notes payable (ong term) 54,000 84,000
Total liabilities 117,200 178,400
Equity
Common stock, $5 par value 268,000 184,000
Retained earning 7,500 31,300
Total liabilities and equity $377,700 $393,700
IKIBAN INC
Income Statenent
For Year Ended June 30, 2018
Sales 678,000
Cost of goods sold 411,000
Gross profit 267,000
Operating expenses
Depreciation expense $58,600
other expenses 67,000
Total operating expenses 125,600
Other gains losses
Gain on sale of equipment 2,000
Income before taxes 143,400
Income taxes expense 43,890
Net income $ 99,510
Additional Information:
1. A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash.
2. The only changes affecting retained earnings are net income and cash dividends paid.
3. New equipment is acquired for $82,600 cash.
4. Received cash for the sale of equipment that had cost $73,600, yielding a $4,500 gain.
5. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
6. All purchases and sales of inventory are on credit.
Prepare the Operating section only of the Statement of Cash Flows for Ikiban Co.