The following financial statements and additional Information are reported. At June 38 Assets Cash IKIBAN INCORPORATED...

 

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The following financial statements and additional Information are reported. At June 38 Assets Cash IKIBAN INCORPORATED Comparative Balance Sheets 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 2021 $ 99,100 86,000 77.888 5,800 268,788 138,080 (34,000) $ 372,708 $ 39,000 7.400 4.800 51,208 44,000 5.200 248.000 29,5ee $ 372, 708 2020 $ 58,000 65,088 187.500 8,200 238,700 129,000 (16,000) $ 351,700 $ 51,000 17.800 6,600 75,400 74,000 149,480 174,000 28,300 $ 351,700 Sales Cost of goods sold Gross profit Income Statement For Year Ended June 30, 2021 Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 748,000 425,000 323.000 81,000 72,600 169.400 3.400 172,800 45.290 $ 127, 510 Additional Information a. A $30.000 notes 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 $71,600 cash. d. Received cash for the sale of equipment that had cost $62.600, yielding a $3.400 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. Prepare a statement of cash flow using indirect method The following financial statements and additional Information are reported. At June 38 Assets Cash IKIBAN INCORPORATED Comparative Balance Sheets 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 2021 $ 99,100 86,000 77.888 5,800 268,788 138,080 (34,000) $ 372,708 $ 39,000 7.400 4.800 51,208 44,000 5.200 248.000 29,5ee $ 372, 708 2020 $ 58,000 65,088 187.500 8,200 238,700 129,000 (16,000) $ 351,700 $ 51,000 17.800 6,600 75,400 74,000 149,480 174,000 28,300 $ 351,700 Sales Cost of goods sold Gross profit Income Statement For Year Ended June 30, 2021 Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 748,000 425,000 323.000 81,000 72,600 169.400 3.400 172,800 45.290 $ 127, 510 Additional Information a. A $30.000 notes 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 $71,600 cash. d. Received cash for the sale of equipment that had cost $62.600, yielding a $3.400 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. Prepare a statement of cash flow using indirect method

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In order to prepare a cash flow statement using indirect method one must initially determine the Accumulated depreciation Cash received from sale of e... View the full answer