The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30,...
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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 $ 82,700 $ 52,000 Accounts receivable, net Inventory Prepaid expenses 77,000 71,800 59,000 98,500 5,200 236,700 7,000 216,500 123,000 (13,000) $326,500 Total current assets Equipment Accum. depreciation-Equipment 132,000 (31,000) Total assets $337,700 Liabilities and Equity Accounts payable Wages payable Income taxes payable $ 33,000 $ 42,000 6,800 4,200 16,600 5,400 64,000 68,000 Total current liabilities 44,000 Notes payable (long term) Total liabilities 31,600 75,600 132,000 Equity Common stock, $5 par value Retained earnings 236,000 168,000 26,500 26,100 Total liabilities and equity $337,700 $326,500 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales $718,000 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses 419,000 299,000 $66,600 75,000 141,600 157,400 Other gains (1losses) Gain on sale of equipment 2,800 Income before taxes 160, 200 44,690 Income taxes expense Net income $115,510 Additional Information a. A $36,400 note payable is retired at its $36,400 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 $65,600 cash. d. Received cash for the sale of equipment that had cost $56,600, yielding a $2,800 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 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 $ The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 Assets Cash $ 82,700 $ 52,000 Accounts receivable, net Inventory Prepaid expenses 77,000 71,800 59,000 98,500 5,200 236,700 7,000 216,500 123,000 (13,000) $326,500 Total current assets Equipment Accum. depreciation-Equipment 132,000 (31,000) Total assets $337,700 Liabilities and Equity Accounts payable Wages payable Income taxes payable $ 33,000 $ 42,000 6,800 4,200 16,600 5,400 64,000 68,000 Total current liabilities 44,000 Notes payable (long term) Total liabilities 31,600 75,600 132,000 Equity Common stock, $5 par value Retained earnings 236,000 168,000 26,500 26,100 Total liabilities and equity $337,700 $326,500 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales $718,000 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses 419,000 299,000 $66,600 75,000 141,600 157,400 Other gains (1losses) Gain on sale of equipment 2,800 Income before taxes 160, 200 44,690 Income taxes expense Net income $115,510 Additional Information a. A $36,400 note payable is retired at its $36,400 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 $65,600 cash. d. Received cash for the sale of equipment that had cost $56,600, yielding a $2,800 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 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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Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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