50.1K

Verified Solution

Link Copied!

Exercise 12-17B Direct: Preparing statement of cash flows LO P5 The following financial statements and additional information are reported. 2018 IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 76,100 Accounts receivable, net 93,500 Inventory 82,800 Prepaid expenses 6,300 Total current assets 258,700 Equipment 143,000 Accum. depreciation-Equipment (36,500) Total assets $365,200 Liabilities and Equity Accounts payable $ 44,000 Wages payable 7,900 Income taxes payable 5,300 Total current liabilities 57,200 Notes payable (long term) 33,800 Total liabilities 91,000 Equity Common stock, $5 par value 258,000 Retained earnings 16,200 Total liabilities and equity $365, 200 $ 63,000 70,000 115,000 9,200 257,200 134,000 (18,500) $372,700 $ 58,500 18,800 7,600 84,900 79,000 163,900 179,000 29,800 $372,700 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 77,600 Other expenses 86,000 Total operating expenses $773,000 430,000 343,000 163,600 179,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,900 183,300 45, 790 $137,510 Additional Information a. A $45,200 note payable is retired at its $45,200 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 $76,600 cash. d. Received cash for the sale of equipment that had cost $67,600, yielding a $3,900 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 be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities Cash received from customers $ 0 Cash flows from investing activities 0 Cash flows from financing activities 0 $ 0 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 0

Answer & Explanation Solved by verified expert

See Answer