Exercise 12-10 Indirect: Preparation of statement of cash flows LO P1 Additional Information a. AS27000 note payable ls retred at its $27000 carryIng ibook value In exchange for cash. b. The only changes affectng retained earnings are net Income and cash dividends pald The following information oppies to the questions displayed belowi acquired for $59,300 cash c. New equipment ad cost $4aTo0, yielding a$2,800 gain. d Received cash for the sale of equipment that h he following financial statements and additional information are reported e. Prepaid Expenses and Wages Payable re Oth er E Income statement. f All purcha es and sales of merchandlse Inventory are on credit KIBAN IN Comparative Balance Sheets June 30, 2012 and 2012 Statement of Cash Flo ndirect Method 2013 Assets For Year Ended June 30, 2013 100.300 64,300 Cash Cash flows from operating activities Accounts recevable, net Net income 84000 65,800 96.600 Tventory Prepaid expenses 5600 4.300 Adjustment to reconcile net income to net cash provided by operating activi Equipment 24,600 4,000 58.400 Accum. depreciation (28.100) Depreciation expense 2.000) Gain on sale of plant assets Total assets 337900 319,900 30.000 Liabilities and Equity Decrease in merchandise inventory 26 600 32,900 Accounts payable (6300) Decrease in accounts payable Wages payable 7300 6.300 (9,000) Decrease in wages payable Income taxes payable 2.300 4.100 Notes payable (long term) 44,000 Common stock, $5 par value 233,000 88,000 Retained earnings 7600 Total 337900 319,900 es and equity Net cash provided by operating activities Cash flows from investing activities Cash received from sale of equipment KIBAN INC. Cash paid for equipment ncome Statemen For Year Ended June 30, 2013 669.00 Net cash used in investing activities Cost of goods sold 407000 Cash flows from financing activities Cash received from stockissuance 45 000 Gross profil 262,000 Operating expenses Cash paid to retire notes 58,400 Depreciation expense Other expense 66.400 Cash paid for dividends Total operating expenses 24 800 Net cash used in financing activities A5000 37.200 S 179.900 Net increase (decrease) in cash Other gain (losses) Cash balance at prior year-end Gain on sale of equlpment 791900 Cash balance at cument year-end ncome before taxes 140 000 ncome taxes expense Net Income 84 000