9 Sints ebook Hint Exercise 12-17B Direct: Preparing statement of cash flows LO PS The following financial statements and additional information are reported. IKIRAN TNC Comparative balance Sheets June 30, 2019 and 2018 2019 2018 Assets Cash $ 85,700 $ 47,000 Accounts receivable, net 69.500 54,000 Inventory 66.800 91.000 Prepaid expenses 4.700 5,000 Total current assets 226,700 198,000 Equipment 127.000 118,000 Accum. depreciation Equipment (28,500) (10,500 Total assets 325,200 305.500 Liabilities and Equity Accounts payable $28.000 $ 34,500 Wages payable 6,300 15,600 Income taxes payable 3.700 4,400 Total current liabilities 30,000 54,500 Notes payable (long term) 30.600 63,000 Total liabilities 68,600 117,500 Equity Common stock, $5 par value 226,000 163.000 Retained earnings 30,600 25,000 Total liabilities and equity $325.200 $ 305,500 Pring References IKIRAN INC. Income Statement Tor Year Ended June 30, 2013 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $61,600 Other expenses 70.000 Total operating expenses 5693.000 414.000 279.000 131.600 147.000 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,300 149,700 44.190 $105,510 Additional Information a. A $32,400 note payable is retired at its $32,400 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 $54600, yielding a $2,300 gain e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement . All purchases and sales of inventory are on credit. Using the direct method, prepare the statement of cash flows for the year ended June 30, 2019. (Amounts to be deducted should be indicated with a minus sign.) IBAN, INC. Statement of Cash Flows Direct Method For Year Ended June 30, 2019 Retained earning Total liabilities and equity $325,200 25,000 $385,500 IKIBAN INC. Income Statement For Year Ended June 30, 2019 5693,000 414,000 279.000 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses $61,600 70.000 131.600 147,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Print 149,700 44,130 $105,510 rences Additional Information a. A $32,400 note payable is retired at its $32,400 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 Using the direct method, prepare the statement of cash flows for the year ended June 30, 2019. (Amounts to be deducted should Indicated with a minus sign.) KIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2015 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net increase (decrease in cash Cash balance at prior year-end Cash balance alorrent year-end