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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

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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. 2018 IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $100,300 Accounts receivable, net 83,000 Inventory 75,800 Prepaid expenses Total current assets 264, 700 Equipment 136,000 Accum. depreciation Equipment (33.000) Total assets $367,700 Liabilities and Equity Accounts payable 37,000 Wages payable 7,200 Income taxes payable 4,600 Total current liabilities 48,800 42,000 Notes payable long term) Total liabilities 90,800 Equity Common stock, $5 par value 244.000 Retained earnings 32,900 367, 700 Total liabilities and equity 56,000 63,000 104,500 7,800 231,300 127,000 (15,000). $343,300 $48.000 17,400 6.200 71,600 72,000 143,600 172,000 27,700 $343,300 IKIBAN INC. Income Statement For Year Ended June 30, 2019 $738,000 2012 Next > IKIBAN INC. Income Statement or Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $70, 600 Other expenses 79,000 Total operating expenses $738,000 423,000 315,000 149,600 165,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,200 168, 600 45,090 $123,510 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 $69,600 cash. d. Received cash for the sale of equipment that had cost $60,600, yielding a $3,200 gain. e. Prepaid Expenses and Wages Payable relate to Other Experises on the income statement. f. All purchases and sales of inventory are on credit Exercise 12-11 Part 1 Exercise 12-11 Part 1 Required: (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2019. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities Net income $ 123,510 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 70,600 Gain on sale of plant assets (3,200) Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable | Decrease in income taxes payable Cash flows from investing activities | Cash received from sale of equipment 12 of 2 Next > Required information Decrease in inventory of 2 Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable $ 190,910 - Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment Book 10 Hint Cash flows from financing activities Cash received from stock issuance Cash paid to retire notes Cash paid for dividends UUUUU LLLLL od 190.910 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end References $ 190,910 $123,510 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 $69,600 cash. d. Received cash for the sale of equipment that had cost $60,600, yielding a $3,200 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. Exercise 12-11 Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2019. Choose Numerator: Cash Flow on Total Assets Ratio Choose Denominator: = Cash Flow on Total Assets Ratio Cash flow on total assets ratio

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