Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [The following information applies to the questions displayed below.] The following financial statements and additional information are reported. 2016 IKIBAN INC. Comparative Balance

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Required information [The following information applies to the questions displayed below.] The following financial statements and additional information are reported. 2016 IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 Assets Cash $ 93,100 Accounts receivable, net 101,000 Inventory 87,800 Prepaid expenses 6,800 Total current assets 288,700 Equipment 148,000 Accum. depreciation-Equipment (39,000) Total assets $397,700 Liabilities and Equity Accounts payable $ 49,000 Wages payable 8,400 Income taxes payable 5,800 Total current liabilities 63,200 Notes payable (long term) 54,000 Total liabilities 117,200 Equity Common stock, $5 par value 268,000 Retained earnings 12,500 Total liabilities and equity $397, 700 $ 68,000 75,000 122,500 10,200 275, 700 139,000 (21,000). $393,700 $ 66,000 19,800 8,600 94,400 84,000 178,400 184,000 31,300 $393,700 Seved Help SLE $798.000 435,000 363,000 IKIBAN INC. Income statement Yor Year Ended June 30, 2017 Sales Cost of goods sold Cross profit Operating expenses Depreciation expense $82,600 Other expenses 91,000 Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 173,600 189,400 4.400 193,000 46,290 $147,510 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 $81,600 cash. d. Received cash for the sale of equipment that had cost $72.600, ylelding a $4,400 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. 0 Required information IRISAN, ING. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 Cash flows from operating activities Net income $ 147,510 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 82,600 Cash received from sale of equipment (4.400) Changes in current operating assets and liabilities $ 225.710 Cash flows from investing activities Required information $ 225,710 Cash flows from investing activities 0 Cash flows from financing activities 0 $ 225.710 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 225,710

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_2

Step: 3

blur-text-image_3

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

Organizational Behavior Improving Performance And Commitment In The Workplace

Authors: Jason Colquitt

8th Edition

126412435X, 9781264124350

More Books

Students also viewed these Accounting questions

Question

7. What are two weaknesses of Ricardo's theory of trade? explain

Answered: 1 week ago