Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following financial statements and additional information are reported. 2020 IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 Assets Cash $ 85,700 Accounts receivable,

image text in transcribed
image text in transcribed
image text in transcribed
The following financial statements and additional information are reported. 2020 IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 Assets Cash $ 85,700 Accounts receivable, net 69,500 Inventory 66,800 Prepaid expenses 4,700 Total current assets 226,700 Equipment 127,000 Accumulated depreciation-Equipment (28,500) Total assets $ 325,200 Liabilities and Equity Accounts payable $ 28,000 Wages payable 6,300 Income taxes payable 3,700 Total current liabilities 38,000 Notes payable (long term) 30, 600 Total liabilities 68,600 Equity Common stock, $5 par value 226,000 Retained earnings 30,600 Total liabilities and equity $ 325,200 $ 47,000 54,000 91,000 6,000 198,000 118,000 (10,500) $ 305,500 $ 34,500 15,600 4,400 54,500 63,000 117,500 163,000 25,000 $ 305,500 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense $ 693,000 414,000 279,000 70,000 61,600 147 Ann IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 693,000 414.000 279,000 70,000 61,600 147.400 2.300 149, 700 44,190 $ 105,510 Additional Information a. A $32,400 note payable is retired at its $32,400 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 $60,600 cash, d. Received cash for the sale of equipment that had cost $51,600, yielding a $2,300 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement f. All purchases and sales of inventory are on credit. Using the direct method, prepare the statement of cash flows for the year ended June 30, 2021. (Amounts to be deducted should be indicated with a minus sign.) Statement of Cash Flows (Direct Method) For Year Ended June 30, 2021 Cash flows from operating activities Cash received from customers Cash paid for income taxes Cash paid for operating expenses $ 0 Net cash provided by operating activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment X 0 Net cash provided by investing activities Cash flows from financing activities Cash received from stock issuance Cash paid to retire notes Cash paid for dividends 0 Net cash provided by financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 0 $ 0

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

Managerial Accounting

Authors: John Wild, Ken Shaw

6th Edition

ISBN: 9781259726972

More Books

Students also viewed these Accounting questions

Question

c. What steps can you take to help eliminate the stress?

Answered: 1 week ago