Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 $ 92, see $ 69,000 102,588 76,00 88,888 124, eee 6.900 18,480 298,700 279,400 149,00 140,00 (39,588). (21,580) $480, 280 $397,906 Assets Cash Accounts receivable, het Inventory Prepaid expenses Total current assets Equipment Accum. depreciation Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long tern) Total liabilities Equity Connon stock, $5 par value Retained warnings Total liabilities and equity $ 50,000 8,500 $ 67,500 20,000 - 5. see -8. Bee 64,400 55,eee 119,400 96,388 85,00 181,300 185, eee 31,600 $397,90 = 278,888 10,800 $400,200 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $83,600 Other expenses 92,eee Total operating expenses $903, een 436,eee 367, eee 175,688 191,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net Income 4,500 195,900 46,398 $149,510 = 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 retained earnings are net income and cash dividends pald. c. New equipment is acquired for $82,600 cash. d. Received cash for the sale of equipment that had cost $73,600. yielding a $4.500 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 using the indirect method for the year ended June 30, 2019. (Amounts to be deducted should be Indicated with a minus sign.) IKIBAN, INC , Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense Cash paid for equipment Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable $ 0 Net cash provided by operating activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment Net cash used in investing activities Cash flows from financing activities Cash paid to retire notes Cash paid for dividends Cash received from stock issuance 0 5 0 Net cash used in financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 0
