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 June 30, 2019 and 2018 2019 2018 Assets Cash $ 85,700
The following financial statements and additional information are reported.
IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 | ||||||||
2019 | 2018 | |||||||
Assets | ||||||||
Cash | $ | 85,700 | $ | 47,000 | ||||
Accounts receivable, net | 69,500 | 54,000 | ||||||
Inventory | 66,800 | 91,000 | ||||||
Prepaid expenses | 4,700 | 6,000 | ||||||
Total current assets | 226,700 | 198,000 | ||||||
Equipment | 127,000 | 118,000 | ||||||
Accum. depreciationEquipment | (28,500 | ) | (10,500 | ) | ||||
Total assets | $ | 325,200 | $ | 305,500 | ||||
Liabilities and Equity | ||||||||
Accounts payable | $ | 28,000 | $ | 34,500 | ||||
Wages payable | 6,300 | 15,600 | ||||||
Income taxes payable | 3,700 | 4,400 | ||||||
Total current liabilities | 38,000 | 54,500 | ||||||
Notes payable (long term) | 30,600 | 63,000 | ||||||
Total liabilities | 68,600 | 117,500 | ||||||
Equity | ||||||||
Common stock, $5 par value | 226,000 | 163,000 | ||||||
Retained earnings | 30,600 | 25,000 | ||||||
Total liabilities and equity | $ | 325,200 | $ | 305,500 | ||||
IKIBAN INC. Income Statement For Year Ended June 30, 2019 | ||||||
Sales | $ | 693,000 | ||||
Cost of goods sold | 414,000 | |||||
Gross profit | 279,000 | |||||
Operating expenses | ||||||
Depreciation expense | $ | 61,600 | ||||
Other expenses | 70,000 | |||||
Total operating expenses | 131,600 | |||||
147,400 | ||||||
Other gains (losses) | ||||||
Gain on sale of equipment | 2,300 | |||||
Income before taxes | 149,700 | |||||
Income taxes expense | 44,190 | |||||
Net income | $ | 105,510 | ||||
Additional Information
- A $32,400 note payable is retired at its $32,400 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 $60,600 cash.
- Received cash for the sale of equipment that had cost $51,600, yielding a $2,300 gain.
- Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
- 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, 2019. (Amounts to be deducted should be indicated with a minus sign.)
IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-endStep 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