The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30,...
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The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 Assets $ 57,000 64,000 106,000 8,000 Cash $ 99,700 Accounts receivable, net Inventory Prepaid expenses Total current assets 84,500 76,800 5,700 266,700 137,000 (33,500) Equipment Accum. depreciation-Equipment 235,000 128,000 (15,500) Total assets $370, 200 $347,500 Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) $ 38,000 7,300 4,700 50,000 43,000 93,000 $ 49,500 17,600 6,400 73,500 73,000 146,500 Total liabilities Equity Common stock, $5 par value Retained earnings 246, 000 31,200 173,000 28,000 $347,500 Total liabilities and equity $370, 200 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses $743,000 424,000 319,000 $71,600 80,000 151,600 167,400 Other gains (losses) Gain on sale of equipment 3,300 Iotai assets Liabilities and Equity Accounts payable Wages payable Income taxes payable $ 38,000 7,300 4,700 $ 49,500 17,600 6,400 73,500 73,000 146,500 Total current liabilities 50,000 Notes payable (long term) 43,000 93,000 Total liabilities Equity Common stock, $5 par value Retained earnings 246,000 31,200 173,000 28,000 $347,500 Total liabilities and equity $370,200 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales $743,000 424,000 319,000 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses $71,600 80,000 151,600 167,400 Other gains (losses) Gain on sale of equipment 3,300 Income before taxes 170,700 Income taxes expense 45,190 Net income $125,510 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 $70,600 cash. d. Received cash for the sale of equipment that had cost $61,600, yielding a $3,300 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. Requlred: (1) Prepare a statement of cash flows using the Indirect method for the year ended June 30, 2019. (Amounts to be deducted should be Indicated with a mlnus sign.) IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 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 The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 Assets $ 57,000 64,000 106,000 8,000 Cash $ 99,700 Accounts receivable, net Inventory Prepaid expenses Total current assets 84,500 76,800 5,700 266,700 137,000 (33,500) Equipment Accum. depreciation-Equipment 235,000 128,000 (15,500) Total assets $370, 200 $347,500 Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) $ 38,000 7,300 4,700 50,000 43,000 93,000 $ 49,500 17,600 6,400 73,500 73,000 146,500 Total liabilities Equity Common stock, $5 par value Retained earnings 246, 000 31,200 173,000 28,000 $347,500 Total liabilities and equity $370, 200 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses $743,000 424,000 319,000 $71,600 80,000 151,600 167,400 Other gains (losses) Gain on sale of equipment 3,300 Iotai assets Liabilities and Equity Accounts payable Wages payable Income taxes payable $ 38,000 7,300 4,700 $ 49,500 17,600 6,400 73,500 73,000 146,500 Total current liabilities 50,000 Notes payable (long term) 43,000 93,000 Total liabilities Equity Common stock, $5 par value Retained earnings 246,000 31,200 173,000 28,000 $347,500 Total liabilities and equity $370,200 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales $743,000 424,000 319,000 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses $71,600 80,000 151,600 167,400 Other gains (losses) Gain on sale of equipment 3,300 Income before taxes 170,700 Income taxes expense 45,190 Net income $125,510 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 $70,600 cash. d. Received cash for the sale of equipment that had cost $61,600, yielding a $3,300 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. Requlred: (1) Prepare a statement of cash flows using the Indirect method for the year ended June 30, 2019. (Amounts to be deducted should be Indicated with a mlnus sign.) IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 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
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Cash Flow from operating activities Cash received from Customers 722500 743000 sales 20500increase i... View the full answer
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
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