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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 Cash $ 85,700

The following financial statements and additional information are reported.

IKIBAN INC. 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 6,000
Total current assets 226,700 198,000
Equipment 127,000 118,000
Accum. depreciationEquipment (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 38,000 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

IKIBAN INC. Income Statement For Year Ended June 30, 2019
Sales $ 693,000
Cost of goods sold 414,000
Gross profit 279,000
Operating expenses
Depreciation expense $ 61,600
Other expenses 70,000
Total operating expenses 131,600
147,400
Other gains (losses)
Gain on sale of equipment 2,300
Income before taxes 149,700
Income taxes expense 44,190
Net income $ 105,510

Additional Information

  1. A $32,400 note payable is retired at its $32,400 carrying (book) value in exchange for cash.
  2. The only changes affecting retained earnings are net income and cash dividends paid.
  3. New equipment is acquired for $60,600 cash.
  4. Received cash for the sale of equipment that had cost $51,600, yielding a $2,300 gain.
  5. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
  6. 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.)

image text in transcribed

IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 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 at current year-end

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