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Refer to the information in Exercise 12-11. Using the direct method, prepare the statement of cash flows for the year ended June 30, 2019. Exercise
Refer to the information in Exercise 12-11. Using the direct method, prepare the statement of cash flows for the year ended June 30, 2019. Exercise 12 Direct: Prepa of cash flows nase the anerating activities section of Exercise 1: cash flows using the indirect method for the year ended June 30, 2019. (2) Compute the company's cash The following financial statements and additional information are reported. (1) Prepare a statement of flow on total assets ratio for fiscal year 2019. IKIBAN INC Income Statement For Year Ende June 30, 2019 Exercise 12-11 Indirect: Preparing statement of cash flows A1 P2 P3 $678,000 411,000 267.000 2018 Sales Cost of goods sold Gross profit.. Operating expenses Depreciation expense.. Other expenses... Total operating expenses. $58,600 67,000 125,600 141,400 IKIBAN INC. Comparative Balance Sheets At June 30 2019 Assets Cash.. $ 87,500 Accounts receivable, net 65,000 Inventory.. 63,800 Prepaid expenses 4,400 Total current assets 220,700 Equipment. 124,000 Accum. depreciation-Equipment... (27.000) Total assets.. $317,700 Llabilities and Equity Accounts payable... $ 25,000 Wages payable 6,000 Income taxes payable. 3,400 Total current liabilities 34,400 Notes payable long term) 30,000 Total liabilities... 64,400 $ 44,000 51,000 86,500 5.400 186,900 115,000 (9.000) $292.900 Other gains (losses) Gain on sale of equipment. Income before taxes.. Income taxes expense Net Income 2.000 143,400 43,890 3 99,510 $ 30,000 15,000 3,800 48,800 60,000 108,800 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. New equipment is acquired for $57,600 cash. d. Received cash for the sale of equipment that had cost $48,600, yield- ing a $2,000 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement All purchases and sales of inventory are on credit. Equity Common stock, $5 par value....... Retained earnings... Total liabilities and equity.. 220,000 33,300 $317.700 160,000 24,100 $292,900 Check (1b) Cash paid for dividends, $90,310 (10) Cash received from equip. sale, $10,000
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