The following financial statements and additional information are reported. 2016 IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 Assets Cash $ 87,500 Accounts receivable, net 65,000 Inventory 63,800 Prepaid expenses 4400 Total current assets 220 700 Equipment 124.000 Accum. depreciation-Equipment (2000) Total assets $317700 Liabilities and Equity Accounts payable $ 25,000 Wages payable 6 000 Income taxes payable 400 Total current liabilities 34400 Notes payable (long term) 30 000 Total liabilities 64.400 Equity Common stock, $5 par value 220,000 Retained earnings 33,300 Total liabilities and equity $317700 S 44000 51,000 86 500 5400 186 900 115000 90000 $ 2929002 BOOOO 15000 3800 48 800 6.VIDIO 108800 160.000 24100 $ 292, 900 $678,000 411,000 267,000 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $58,600 Other expenses 67,000 Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 125,600 141,400 2,000 143,400 43,890 $ 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 paid. 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, 2017. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2017 Cash flows from operating activities $ $ Net cash provided by operating activities Cash flows from investing activities Cash paid for equipment Cash received from sale of equipment (57.600) 10,000 (47,600) Net cash used in investing activities Cash flows from financing activities Cash received from stock issuance Cash paid for dividends Cash paid to retire notes 60.000 (90,310) (30,000)
