prepare a statement of cash flows for the year ended june
VULL HIIJ ULU IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 $ 92,500 102,500 88,800 6,900 290,700 149,000 (39,500) $400,200 $ 69,000 76,000 124,000 10,400 279,400 140,000 (21,500) $397,900 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 liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $ 50,000 8,500 5,900 64,400 55,000 119,400 $ 67,500 20,000 8,800 96,300 85,000 181,300 270,000 10,800 $400,200 185,000 31,600 $397,900 12 Homework Saved Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $83,600 Other expenses 92,000 Total operating expenses $803,000 436,000 367,000 175,600 191,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 4,500 195,900 46, 390 $149,510 nces 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 $82,600 cash. d. Received cash for the sale of equipment that had cost $73,600. yielding a $4.500 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. Required: (1) Prepare a statement of cash flows for the year ended June 30, 2017, using the indirect method (Amounts to be des be indicated with a minus sign.) Required information INIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 Cash flows from operating activities Net income $ 149,510 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 83,600 Cash received from sale of equipment (4,500) Increase in accounts receivable (65,500) Changes in current operating assets and liabilities Decrease in inventory 35,200 Decrease in prepaid expenses 3,500 Decrease in accounts payable 17,500 Decrease in wages payable 11,500 Decrease in income taxes payable P 2.900 233,710 Cash flows from investing activities Cash paid for equipment ULIVU UUUU U VIL VUU Required information S 233,710 MAR Cash flows from investing activities Cash paid for equipment ces Cash flows from financing activities $ 233,710 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 233,710
