The following financial statements and additional information are reported. Assets Cash IKIBAN INC. Comparative Balance Sheets...

   

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The following financial statements and additional information are reported. Assets Cash IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 Accounts receivable, net. Inventory Prepaid expenses Total current assets Equipment Accum. 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 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 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information $74,600 83,000 2019 $ 97,900 89,000 79,800 6,000 272,700 140,000 (35,000) $377,700 $ 41,000 7,600 5,000 53,600 46,000 99,600 252,000 26,100 $377,700 $758,000 427,000 331,000 - 157,600 173,400 3,600 177,000 45,490) $131,510 2018. $ 60,000 67,000 110,500 8,600 246,100 131,000 (17,000) $360,100 $ 54,000 18,200 7,000 79,200 76,000 155,200 176,000 28,900 $360,100 a. A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. 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 $73,600 cash. d. Received cash for the sale of equipment that had cost $64,600, yielding a $3,600 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: (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 minus sign.) IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities search 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. Cach Baise fram iminetinn netiultinn O Et C < Prev 6 of 40 Next > Cash flows from operating activities 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 EXILIPAIN, HINGT Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end search O L P < Prev 6 of 40 Next > The following financial statements and additional information are reported. Assets Cash IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 Accounts receivable, net. Inventory Prepaid expenses Total current assets Equipment Accum. 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 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 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information $74,600 83,000 2019 $ 97,900 89,000 79,800 6,000 272,700 140,000 (35,000) $377,700 $ 41,000 7,600 5,000 53,600 46,000 99,600 252,000 26,100 $377,700 $758,000 427,000 331,000 - 157,600 173,400 3,600 177,000 45,490) $131,510 2018. $ 60,000 67,000 110,500 8,600 246,100 131,000 (17,000) $360,100 $ 54,000 18,200 7,000 79,200 76,000 155,200 176,000 28,900 $360,100 a. A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. 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 $73,600 cash. d. Received cash for the sale of equipment that had cost $64,600, yielding a $3,600 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: (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 minus sign.) IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities search 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. Cach Baise fram iminetinn netiultinn O Et C < Prev 6 of 40 Next > Cash flows from operating activities 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 EXILIPAIN, HINGT Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end search O L P < Prev 6 of 40 Next >

Answer rating: 100% (QA)

Solution 1 The statement of cash flow using indirect method for the year ended June 302019 is as fol... View the full answer