exercise 12-11 indirect: preparing statement of cash flows LO P1, P2, P3, A1

Required information Exercise 12-11 Indirect: Preparing statement of cash flows LO P1, P2, P3, A1 (The following information applies to the questions displayed below.) The following financial statements and additional information are reported. 2016 IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 Assets Cash $ 99, 100 Accounts receivable, net 86,000 Inventory 77,800 Prepaid expenses 5.800 Total current assets 268,700 Equipment 138,000 Accum. depreciation Equipment (34,000) Total assets $372,700 Liabilities and Equity Accounts payable $ 39,000 Wages payable 7.400 Income taxes payable 4,800 Total current liabilities 51,200 Notes payable (long term) 44,000 Total liabilities 95,200 Equity Common stock, $5 par value 248,000 Retained earnings 29,500 $372,700 Total liabilities and equity $ 58,000 65,000 107,500 8.200 238,700 129,000 (16,000) $351,700 rences $ 51,000 17.000 6,600 75,400 74,000 149, 400 174,000 28,300 $351,700 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales $748,000 Ann mework i Common stock, $5 par value Retained earnings Total liabilities and equity 248,000 29,500 $372,700 174,000 28,300 $351,700 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $72,600 Other expenses 81,000 Total operating expenses $748,000 425,000 323,000 153,600 169,400 JO Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,400 172,800 45,290 $127,510 int Print Additional Information erences 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 $71,600 cash. d. Received cash for the sale of equipment that had cost $62,600. yielding a $3,400 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 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2017 Prey 457 Next > Net income $127,510 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 paid. c. New equipment is acquired for $71,600 cash. d. Received cash for the sale of equipment that had cost $62,600. yielding a $3,400 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 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2017. Choose Numerator: Cash Flow on Total Assets Ratio Choose Denominator: = Cash Flow on Total Assets Ratio Cash flow on total assets ratio YOLUN Using the direct method, prepare the statement of cash flows for the year ended June 30, 2017 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 esting activities 21 23 12 8 TIT le I Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end