Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets At June 30 2020 2019 Assets Cash $ 106,300 $ 46,000
The following financial statements and additional information are reported.
IKIBAN INC. Comparative Balance Sheets | ||||||||
At June 30 | 2020 | 2019 | ||||||
Assets | ||||||||
Cash | $ | 106,300 | $ | 46,000 | ||||
Accounts receivable, net | 68,000 | 53,000 | ||||||
Inventory | 65,800 | 89,500 | ||||||
Prepaid expenses | 4,600 | 5,800 | ||||||
Total current assets | 244,700 | 194,300 | ||||||
Equipment | 126,000 | 117,000 | ||||||
Accum. depreciationEquipment | (28,000 | ) | (10,000 | ) | ||||
Total assets | $ | 342,700 | $ | 301,300 | ||||
Liabilities and Equity | ||||||||
Accounts payable | $ | 27,000 | $ | 33,000 | ||||
Wages payable | 6,200 | 15,400 | ||||||
Income taxes payable | 3,600 | 4,200 | ||||||
Total current liabilities | 36,800 | 52,600 | ||||||
Notes payable (long term) | 32,000 | 62,000 | ||||||
Total liabilities | 68,800 | 114,600 | ||||||
Equity | ||||||||
Common stock, $5 par value | 224,000 | 162,000 | ||||||
Retained earnings | 49,900 | 24,700 | ||||||
Total liabilities and equity | $ | 342,700 | $ | 301,300 | ||||
IKIBAN INC. Income Statement For Year Ended June 30, 2020 | |||
Sales | $ | 688,000 | |
Cost of goods sold | 413,000 | ||
Gross profit | 275,000 | ||
Operating expenses (excluding depreciation) | 69,000 | ||
Depreciation expense | 60,600 | ||
145,400 | |||
Other gains (losses) | |||
Gain on sale of equipment | 2,200 | ||
Income before taxes | 147,600 | ||
Income taxes expense | 44,090 | ||
Net income | $ | 103,510 | |
Additional Information
- A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash.
- The only changes affecting retained earnings are net income and cash dividends paid.
- New equipment is acquired for $59,600 cash.
- Received cash for the sale of equipment that had cost $50,600, yielding a $2,200 gain.
- Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement.
- All purchases and sales of inventory are on credit.
Required:
(1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2020. (Amounts to be deducted should be indicated with a minus sign.)
Something is missing!
Also, help me answer this question:
X Answer is not complete. IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities Net income $ 103,510 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 60,600 Gain on sale of plant assets (2,200) 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 (15,000) 23,700 1,200 (6,000) (9,200) (600) $ 156,010 $ 156,010 Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment 10,200 (59,600) (49,400) Net cash used in investing activities Cash flows from financing activities Cash received from stock issuance 62,000 Cash paid to retire notes Cash paid for dividends (30,000) (78,310) $ Net cash used in financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end (46,310) 60,300 46,000 106,300 $ Exercise 12-12 (Algo) Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2020. Cash Flow on Total Assets Ratio Choose Numerator: Cash Flow on Total Assets Ratio Operating cash flows 1 Choose Denominator: | Average total assets 1 Cash flow on total assets ratio
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started