Exercise 16-17B Direct: Preparing Statement of cash flows LO P5

Exercise 16-17B Direct: Preparing statement of cash flows LO P5 The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 $ 87,500 65,000 4,400 220,700 124,000 (27,000) $317,700 $ 44,000 51,000 86,500 5,400 186,900 115,000 (9,000) $292,900 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation- Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilit Notes payable (long t Total liabilities Equity Common stock, $5 par va Retained earnings Total liabilities and equit $ 25,000 6,000 3,400 34,400 30,000 64,400 $ 30,000 15,000 3,800 48,800 60,000 108,800 220,000 ,300 17,708 160,000 2 4, 100 $292,900 IKIBAN Total liabilities and equity LI, IKIBAN INC Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $58,600 Other expenses 67,600 Total operating expenses $678,080 411,800 267,000 125,600 141,480 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,089 143,400 43,890 $ 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 paid. c. New equipment is acquired for $57,600 cash d. Received cash for the sale of equipment that had cost $48,600, yielding 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 Using the direct method, prepare the statement of cash flows for the year ended June 30, 2019. (Amounts to be deducted should b indicated with a minus sign.) to search KIBAN, INC Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities P Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end Drew