The following financial statements and additional information are reported 14 TANINO Comparative Balance Sheets June 30, 2019 and 2018 Accounts receivable net Tventor Prepaid expenses Total current sets Equipment A depreciation Equipment $ 87,500 55.0 63,80 1,400 228,7 124.00 (27.000 $317.788 44.ee 51,800 85,500 3,400 115,00 (9 $292, 900 Liabilities and Equity Accounts payable es payable Income taxes payable Totalcurrent liabilities oyable long term $ 25,000 5.ee 38, 15:00 38.00 39 quit tock 55 par value Banedannings 33183 4 Nates payable long term Total abilities common stock, ss par value Retained earnings Total liabilities and equity Income Statement For Year Ended June 30, 2019 Sales 5678.00 267. Bae Goproti Operating expense Depreciation expense Other expense Total operating expenses 558,600 67,888 125,600 141,400 2.800 Other gains (losses) Gain on sale of equipment Tome before taxes taxes expense income 399,510 apter 12 Swed Net income $ 99,510 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 $57,600 cash d. Received cash for the sale of equipment that had cost $48,600. yielding a $2.000 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 Using the direct method, prepare the statement of cash flows for the year ended June 30, 2019 (Amounts to be indicated with a minus sign:) IKIBAN, INC Statement of Cash Flows Direct Method) For Year Ended June 10, 2019 Cash flows from operating activities Not income 99.150 Dopreciation experise 50.000 Cachorved from sale of equipment 12.000 Increase in accounts receivable IKIBAN, INC Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities Net Income 99,150 Depreciation expense 58,600 Cash received from sale of equipment (2.000) Increase in accounts receivable (14,000) Decrease in merchandise inventory 22,700 Nel cash provided by operating activities Cash Nows from investing activities S 164.450 Cat down from financing activities 22,700 Decrease in merchandise inventory Net cash provided by operating activities Cash flows from investing activities $ 164,450 0 Cash flows from financing activities 0 164,450 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 164,450 Homework: Chapter 12 The following financial statements and additional information are reported 14. IKIEAN INC Comparative Balance Sheets June 30, 2019 and 2018 15 2012 Coflook $ 87,500 65,000 59,800 4,400 220, 720 124.000 (27.000 $317.700 44,000 51.000 36,500 5.400 185, 900 115.000 (9.00 $292,900 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, 55 par value Retained earnings Total liabilities and equity 30.000 15,00 $ 25,000 6.888 3,48 34.480 30.ae 54,400 48, 60,000 100.800 100.000 24.100 Chapter 12 Sood IKIBAN INC Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $58,500 Other expenses 67.000 Total operating expenses $678,000 411,000 267,000 125.680 141,400 other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,000 143,400 43,890 $ 99,510 Additional information 2. 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 pala c. Now equipment is acquired for $57,600 cash d. Received cash for the sale of equipment that had cost $48,600, yielding a $2.000 gain e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement 1. All purchases and sales of inventory are on credit