Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required Information Exercise 12-11 Indirect: Preparing statement of cash flows LO P2, P3, A1 [The following Information applies to the questions displayed below.) The following

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Required Information Exercise 12-11 Indirect: Preparing statement of cash flows LO 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, 2019 and 2018 2019 2018 $ 99,700 84,500 76,800 5,700 266, 700 137,eee (33,500) $370,200 $ 57,000 64,000 16 , 8,800 235, eee 128,000 (15,500) $347,500 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 $ 38,888 7,380 4,700 58,000 43,800 93,800 $ 49,5ee 17,600 6,480 73,500 73,eee 146,500 246,800 31, 208 $370,200 173,000 28.800 $347,500 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $71, 680 Other expenses 80,000 Total operating expenses $743,000 424, eee 319,800 151,6ee 167,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,300 170,700 45,190 $125,510 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 pald. c. New equipment is acquired for $70,600 cash. d. Received cash for the sale of equipment that had cost $61.600. yielding a $3,300 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. KING Statement of Cash Flow Indirect Method For Year Ended June 30, 2019 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 $ 0 Cash flows from investing activities 0 Cash flows from financing activities $ Cash flows from investing activities 0 Cash flows from financing activities 0 S G 0 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end S

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Product Costing Concepts And Applications

Authors: Ralph S. Polimeni

3rd Edition

0072390840, 978-0072390841

More Books

Students also viewed these Accounting questions

Question

Aware of the role of HRM in multinational corporations.

Answered: 1 week ago