The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated 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 2020 2019 $ 100,300 83,000 75,800 $ 56,000 63,000 104,500 5,600 7,800 264,700 136,000 (33,000) 231,300 $ 367,700 $ 37,000 7,200 127,000 (15,000) $ 343,300 $ 48,000 17,400 6,200 71,600 4,600 48,800 42,000 72,000 90,800 143,600 244,000 32,900 $ 367,700 172,000 27,700 $ 343,300 Sales IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2020 $ 738,000 423,000 315,000 79,000 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 70,600 165,400 3,200 168,600 45,090 $ 123,510 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 $69,600 cash. d. Received cash for the sale of equipment that had cost $60,600, yielding a $3,200 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit. Required: (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2020. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 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 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 INCORPORATED Comparative Balance Sheets At June 30 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated 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 2020 2019 $ 100,300 83,000 75,800 $ 56,000 63,000 104,500 5,600 7,800 264,700 136,000 (33,000) 231,300 $ 367,700 $ 37,000 7,200 127,000 (15,000) $ 343,300 $ 48,000 17,400 6,200 71,600 4,600 48,800 42,000 72,000 90,800 143,600 244,000 32,900 $ 367,700 172,000 27,700 $ 343,300 Sales IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2020 $ 738,000 423,000 315,000 79,000 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 70,600 165,400 3,200 168,600 45,090 $ 123,510 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 $69,600 cash. d. Received cash for the sale of equipment that had cost $60,600, yielding a $3,200 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit. Required: (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2020. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 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 Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end
Expert Answer:
Related Book For
Financial Accounting Information For Decisions
ISBN: 9781260705584
10th Edition
Authors: John J. Wild
Posted Date:
Students also viewed these finance questions
-
Does American culture help or hinder acceptance of foreign products? How?
-
Bulb #1 uses 20 W and produces 1280 lumens. Bulb #2 uses 75W and produces 1200 lumens and has a service life of 750 h. (a) Calculate the efficacy of each light. (b) Estimate how much it will cost to...
-
Consider the following the flat database table: FName LName Address California Florida New Jersey California Mark Maria John Mark John Smith Cruise Hareson Smith Hareson Course code TM366 TM366 TM112...
-
The labels have fallen off three bottles containing powdered samples of metals; one contains zinc, one lead, and the other platinum. You have three solutions at your disposal: 1 M sodium nitrate, 1 M...
-
Analyze and prepare a daily wage with the following transactions. A security company purchased office supplies in cash for $700. The security company bought a printer for $200 on credit. The owner,...
-
How can we use packaging to structure modeling artifacts?
-
Prepare all journal entries for 20X2 concerning the following data for a medical clinic that performs elective laser surgery that corrects vision. Such procedures are not covered by third-party...
-
A town decides to implement a new property tax on any type of factory located in the city limits. Which shifter of supply is this an example of?
-
Kamala Khan works full time as a video game programmer and earns $40,000 in 2022. She paid $3,000 in student loan interest during the year. She owns a small condo, for which she paid $5,000 in...
-
A paragraph in the recent financial statements of Winfred Discount Stores begins: 'Advertising, selling, administrative and general expenses increased as a percentage of sales in 20X1 compared to...
-
This list of items is to be included in the cash flow statement of the Brockman Lawn Sprinklers Business for the current year: a Payment for purchase of trenching equipment, \(\$ 6000\) b Payments to...
-
What is the primary function of the auditor? In your own words, describe what an audit opinion says.
-
What types of accounts are closed at the end of the accounting year? What are the three major steps in the closing process?
-
Describe a decision that requires financial statement information, other than a stock investment decision. How is financial statement information useful in making this decision?
-
What are two of the residual effects of victimization? The criminal justice system has responded to these residual effects with reporting assistance. What are two reporting methods that have been...
-
One of the significant and relevant accounts for this cycle is equipment. For this account, what would typically be the most relevant assertions for the auditor to consider? Why is it important for...
-
W hat is diauxic growth? Explain the roles of cAMP and CAP in this process.
-
What is antisense RNA? How does it affect the translation of a complementary mRNA?
-
What are the functions of activator proteins and repressor proteins in transcription? Explain how these proteins work at the molecular level.
Study smarter with the SolutionInn App