(1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021. (Amounts to be deducte

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(1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021. (Amounts to be deducted should be indicated with a minus sign.)
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: 1 Prepare A Statement Of Cash Flows Using The Indirect Method For The Year Ended June 30 2021 Amounts To Be Deducte 1 (35.42 KiB) Viewed 128 times

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: 1 Prepare A Statement Of Cash Flows Using The Indirect Method For The Year Ended June 30 2021 Amounts To Be Deducte 3 (59.43 KiB) Viewed 128 times

Required information Exercise 16-12 (Algo) Indirect: Preparing statement of cash flows LO P2, P3, A1 [The following information applies to the questions displayed below.) The following financial statements and additional information are reported. TKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 2020 Assets Cash $ 102. 100 $ 53,000 Accounts receivable, net 78.500 60.000 Inventory 72. 800 100.000 Prepaid expenses 5. 300 7.200 Total current assets 258, 700 220.200 Equipment 133.000 124.000 Accumulated depreciation Equipment (31.500) (13.500) Total assets $ 360,200 $ 330, 700 Liabilities and Equity Accounts payable $ 34,000 $ 43,500 Wages payable 6.900 16.800 Income taxes payable 4 300 5.600 Total current liabilities 45.200 65.900 Notes payablo (long torm) 39.000 69,000 Total liabilities 84200 134.900 Equity Common stock. $5 par value 238.000 169.000 Retained earnings 38.000 26 800 Total liabilities and equity $ 360, 200 $ 330, 700 TKIRAN INCORPORATED

IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 723.000 420.000 303,000 76.000 67.600 159.400 2.900 162. 300 44.790 $ 117.510 Additional Information a. A $30,000 notes 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 $66,600 cash. d. Received cash for the sale of equipment that had cost $57.600 yielding a $2,900 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit.

Exercise 16-12 (Algo) Part 1 Required: (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2021 Cash flows from operating activities Net income 117.510 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 67.600 Gain on sale of plant assets (2.000) $ Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses Decrease in accounts payablo Decrease in wages payable Decrease in income taxes payable (18,500) 27.200 3.900 (9.500) (9,900) (1.300) $ 172.110 Net cash provided by operating activities Cash flows from Investing activities Cash paid for equipment Cash received from sale of equipment (66,600) (66.600) Not cash used in investing activities Cash flows from financing activities Cash paid for dividends Cash paid to retire notes Cash received from stock issuance ol (30,000) 69,000 $ Net cash used in financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end 39,000 144.510 53.000 197,510 $