IKIBAN INC. Comparative Balance Sheets June 30, 2015 and 2014
	2015				2014
Assets
Cash	$	87,500			$	44,000
Accounts receivable, net		65,000				51,000
Inventory		63,800				86,500
Prepaid expenses		4,400				5,400
Total current assets		220,700				186,900
Equipment		124,000				115,000
Accum. depreciationEquipment		(27,000	)			(9,000	)
Total assets	$	317,700			$	292,900
Liabilities and Equity
Accounts payable	$	25,000			$	30,000
Wages payable		6,000				15,000
Income taxes payable		3,400				3,800
Total current liabilities		34,400				48,800
Notes payable (long term)		30,000				60,000
Total liabilities		64,400				108,800
Equity
Common stock, $5 par value		220,000				160,000
Retained earnings		33,300				24,100
Total liabilities and equity	$	317,700			$	292,900

IKIBAN INC. Income Statement For Year Ended June 30, 2015

Sales

$

678,000

Cost of goods sold

411,000

Gross profit

267,000

Operating expenses

Depreciation expense

$

58,600

Other expenses

67,000

Total operating expenses

125,600

141,400

Other gains (losses)

Gain on sale of equipment

2,000

Income before taxes

143,400

Income taxes expense

43,890

Net income

$

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.

IKIBAN, INC.
Statement of Cash Flows (Direct Method)
For Year Ended June 30, 2015
Cash flows from operating activities
		$0
Cash flows from investing activities
		0
Cash flows from financing activities
		0
Net increase (decrease) in cash		$0
Cash balance at prior year-end
Cash balance at current year-end		$0

	Net income for the year was $100,000.
b.	Dividends of $80,000 cash were declared and paid.
c.	Scoretecks only noncash expense was $70,000 of depreciation.
d.	The company purchased plant assets for $70,000 cash.
e.	Notes payable of $20,000 were issued for $20,000 cash.

Complete the following spreadsheet in preparation of the statement of cash flows. (The statement of cash flows is not required.) Report operating activities under the indirect method.

SCORETECK CORPORATION
Spreadsheet for Statement of Cash FlowsIndirect Method
For Year Ended December 31, 2015
	Dec. 31,	Analysis of Changes		Dec. 31,
	2014	Debit	Credit	2015
Balance SheetDebit Bal. Accounts
Cash	$80,000			$60,000
Accounts receivable	120,000			190,000
Inventory	250,000			230,000
Plant assets	600,000			670,000
	$1,050,000			$1,150,000
Balance SheetCredit Bal. Accounts
Accumulated depreciation	$100,000			$170,000
Accounts payable	150,000			140,000
Notes payable	370,000			390,000
Common stock	200,000			200,000
Retained earnings	230,000			250,000
	$1,050,000			$1,150,000
Statement of Cash Flows
Operating activities
Investing activities
Financing activities
		$0	$0

Cash and cash equivalents balance, December 31, 2014	$	40,000
Cash and cash equivalents balance, December 31, 2015		148,000
Cash received as interest		3,500
Cash paid for salaries		76,500
Bonds payable retired by issuing common stock (no gain or loss on retirement)		185,500
Cash paid to retire long-term notes payable		100,000
Cash received from sale of equipment		60,250
Cash received in exchange for six-month note payable		35,000
Land purchased by issuing long-term note payable		105,250
Cash paid for store equipment		24,750
Cash dividends paid		10,000
Cash paid for other expenses		20,000
Cash received from customers		495,000
Cash paid for inventory		254,500

Use the above information about the cash flows of Ferron Company to prepare a complete statement of cash flows (direct method) for the year ended December 31, 2015

FERRON COMPANY
Statement of Cash Flows
For Year Ended December 31, 2015
Cash flows from operating activities
		$0
Cash flows from investing activities
		0
Cash flows from financing activities
		0
Net increase (decrease) in cash and cash equivalents		$0
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		$0
Noncash investing and financing activities