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. IKTBAN INC Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 $ 87,see 65,680 63,880 4.460 220,700 124.ee (27.eee) $317,702 44.689 51,680 86,5ee 5.4ee 186,980 115,00 (9.680) $292,900 Assets Cash Accounts receivable, net 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 term Total Ilabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $ 25,680 6.882 3,480 34,400 30, 880 64,400 $ 30.680 15.880 3. see 48,888 6 ,880 108.889 22e, 33, 30e $317,7ee 160,680 24,12e $292,989 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $58.600 Other expenses 67.820 Total operating expenses $678.889 411,820 267,680 125,6ee 141,480 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2.880 143,460 43.89e $ 99,510 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 $57,600 cash. d. Received cash for the sale of equipment that had cost $48.600. ylelding a $2.000 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: Operating cash flows Cash Flow on Total Assets Ratio Choose Denominator: = Cash Flow on Total Assets Ratio Average total assets = Cash flow on total assets ratio / 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 $57,600 cash. d. Received cash for the sale of equipment that had cost $48.600. ylelding a $2.000 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 12-12B Direct: Preparing statement of cash flows LO P1, P3, P5 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
