Required information Exercise 12-11 Indirect: Preparing statement of cash flows LO P1, P2, P3, A1 The following information applies to the questions displayed below The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash Accounts receivable, net 93,100 68,000 75,000 122,500 10,200 275,700 148,000139,000 (39,000 21,000) 101,000 87,800 6,800 288,700 Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets 397,700 $393,700 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 earninga Total liabilities and equity 49,000 66,000 19,800 8,600 94,400 84,000 178,400 8,400 5,800 63,2009448 54.000 117,200 268,000184,00o 12,50031,300 S 397,700 $393,700 Pre1 of 1Next IKIBAN INC Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $798,000 435,000 363,000 Depreciation expense Other expenses $82,600 91,000 173,600 189,400 Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 4.400 193, 800 46,290 $147,510 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 $81,600 cash. d. Received cash for the sale of equipment that had cost $72,600, yielding a $4,400 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 1 of 11:1 Next Prey Required information (1) Prepare a statement of cash flows for the year ended June 30, 2017, using the indirect method. (Amounts to b be indicated with a minus sign.) IKIBAN, INC Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities Cash flows from investina activities Preyof 1 EEE Next Cash flows from investing activities Hint Ask Print Cash flows from financing activities References Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end Mc Graw Hal Prex 1 of 1 Next
