Additional Information 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 pald. c. New equipment is acquired for $58,600 cash. d. Receved cash for the sale of equipment that had cost $49,600, yielding a $2,100 galn. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement f. All purchases and sales of inventory are on credit 0. The following flinanclal statements and additional Information are reported. IKIBAN INC Comparative Balance Sheets June 30, 2018 and 2017 2017 2018 Assets $ 86,900 $ 45,000 66,500 64,800 4,500 222,700 125,000 (27,500) $320, 200 $297,100 Cash 52,000 88,000 5,680 Accounts receivable, net Inventory Prepaid expenses Total current assets 190,600 116,000 Equipment Accum. depreciation-Equipment (9,500) Total assets Liabilities and Equity Accounts payable $ 31,500 15,200 4,000 50,700 61,000 111,700 $ 26,000 6,100 3,500 35, 600 31,e00 66,600 Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value 222,000 161,000 Equity Common stock, $5 par value Retained earnings Total liabilities and equity 161,000 24,400 $297,100 222,000 31,600 $320, 200 IKIBAN INC. Income Statement For Year Ended June 30, 2018 $683,000 412,000 271,000 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses $59,600 68,000 127,600 143,400 Other gains (1losses) Gain on sale of equipment Income before taxes 2,100 145,500 43,990 $101,510 Income taxes expense Net income uperating expenses Depreciation expense Other expenses Total operating expenses $59,600 68,000 127,600 143,400 Other gains (losses) Gain on sale of equipment 2,100 145,500 43,990 $101,510 Income before taxes Income taxes expense Net income 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 retalned earnings are net income and cash dividends pald. c. New equipment is acquired for $58,600 cash. d. Received cash for the sale of equipment that had cost $49,600, ylelding a $2,100 galn. e. Prepald Expenses and Wages Payable relate to Other Expenses on the Income statement f. All purchases and sales of Inventory are on credit Requirec O Precare a statement of cash fows for the vear ended June 30, 2018, using the indirect method (Amounts to be deducted should be Indicated with a minus sign)
