Exercise 12-11 Indirect: Preparing statement of cash flows LO P2, P3, A1 [The following information applies to the questions displayed below.) The following financial statements and additional information are reported. Book Hint 2018 Ask IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $101,500 Accounts receivable, net 80,000 Inventory 73,800 Prepaid expenses 5,400 Total current assets 260, 700 Equipment 134,000 Accum. depreciation-Equipment (32,000) Total assets $362,700 Liabilities and Equity Accounts payable $ 35,000 Wages payable 7,000 Income taxes payable 4,400 Total current liabilities 46,400 Notes payable (long term) 40.000 Total liabilities 86,400 Equity Common stock, $5 par value 240,000 Retained earnings 36,300 Total liabilities and equity $362,700 $ 54,000 61,000 101,500 7,400 223,900 125,000 (14,000) $334,900 Print $ 45,000 17,000 5,800 67,800 70,000 137,800 170,000 27, 100 $334,900 bk $728,000 421,000 307,000 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $68,600 Other expenses 77,000 Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 145,600 161,400 3,000 164,400 44,890 $119,510 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 $67,600 cash. d. Received cash for the sale of equipment that had cost $58,600, yielding a $3,000 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 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.) eBook IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Yoar Ended June 30, 2019 Cash flows from operating activities Hint Ask Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Paint Changes in current operating assets and liabilities $ 0 Cash flows from investing activities Changes in current operating assets and liabilities ints eBook Hint $ 0 Cash flows from investing activities Ask 0 Print Cash flows from financing activities 0 $ 0 Not increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 0
