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How do i calculate? The following financial statements and additional information are reported. IKIBAN INC Comparative Balance Sheets June 30, 2019 and 2018 2019 2018
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The following financial statements and additional information are reported. IKIBAN INC Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 Assets Cash Accounts receivable, net Inventory Prepaid expenses $ 86,900 66,500 64,800 4,500 s 45,000 52,000 88,000 5,600 190,600 116,000 222,700 125,000 (27,500) Total current assets Equipment Accum. depreciation-Equipment (9,500) $320,200 $297,100 Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) $ 26,000 6,100 3,500 35,600 30,200 65,800 $31,500 15,200 4,000 50,700 61,000 Total liabilities 111,700 Equity Common stock, $5 par value Retained earnings 161,000 24,400 222,000 32,400 Total liabilities and equity $320,200 $297,100 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales $683,000 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses 412,000 271,000 $59,600 68,000 Total operating expenses 127,600 143,400 Other gains (losses) Gain on sale of equipment 2,100 145,500 Income before taxes Income taxes expense 43,990 $101,510 Net income Additional Information a. A $30,800 note payable is retired at its $30,800 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 $58,600 cash d. Received cash for the sale of equipment that had cost $49,600, yielding a $2,100 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 be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities 19,500 Net income Depreciation expense 19,500 $ Cash flows from investing activities C Cash flows from financing activities C Net increase (decrease) in cash 19,500 Cash balance at prior year-end Cash balance at current year-end 19,500 $ EAStep by Step Solution
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