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Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash $ 68,000 93,100 Accounts receivable, net Inventory Prepaid expenses Total current assets 101,000
Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash $ 68,000 93,100 Accounts receivable, net Inventory Prepaid expenses Total current assets 101,000 87,800 6,800 75,000 122,500 10,200 288,700 148,000 (39,000) 275,700 Equipment Accum. depreciation-Equipment 139,000 (21,000 Total assets $397,700 $393,700 Liabilities and Equity Accounts payable Wages payable Income taxes payable $ 49,000 66,000 8,400 19,800 5,800 8,600 Total current liabilities 63,200 94,400 Notes payable (long term) 54,000 84,000 Total liabilities 117,200 178,400 Equity Common stock, $5 par value Retained earnings 184,000 31,300 268,000 12,500 Total liabilities and equity $397,700 $393,700 IKIBAN INC. Income Statement For Year Ended June 30, 2017 $798,000 435,000 363,000 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $82,600 Other expenses 91,000 Total operating expenses 173,600 189,400 Other gains (losses) Gain on sale of equipment 4,400 Income before taxes 193,800 Income taxes expense 46,290 $147,510 Net income a. 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 paid. c. New equipment is acquired for $81,600 cash. d. Received cash for the sale of equipment that had cost $72,600, yielding a $4,400 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. Exercise 12-11 Part 1 Required: (1) Prepare a statement of cash flows for the year ended June 30, 2017, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities 0 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 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2017 Cash Flow on Total Assets Ratio Choose Denominator: Choose Numerator: Cash Flow on Total Assets Ratio Cash flow on total assets ratio - Using the direct method, prepare the statement of cash flows for the year ended June 30, 2017. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2017 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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