- The Following Financial Statements And Additional Information Are Reported Ikiban Incorporated Comparative Balance Shee 1 (202.38 KiB) Viewed 43 times
The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 2020 Assets Cash $ 55,000 $ 100,900 81,500 Accounts receivable, net 62,000 Inventory 74,800 103,000 Prepaid expenses 5,500 7,600 Total current assets 262,700 227,600 Equipment 135,000 126,000 Accumulated depreciation-Equipment (32,500) (14,500) Total assets $365,200 $ 339,100 Liabilities and Equity $ 36,000 $ 46,500 Accounts payable Wages payable 7,100 17,200 Income taxes payable 4,500 6,000 Total current liabilities 47,600 69,700 41,000 71,000 Notes payable (long term) Total liabilities 88,600 140,700 Equity Common stock, $5 par value Retained earnings 242,000 34,600 171,000 27,400 Total liabilities and equity $ 365,200 $ 339,100 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales $ 733,000 Cost of goods sold 422,000 Gross profit 311,000 Operating expenses (excluding depreciation) 78,000 Depreciation expense 69,600 163,400 Other gains (losses) Gain on sale of equipment 3,100 Income before taxes 166,500 44,990 Income taxes expense Net income $ 121,510 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 $68,600 cash. d. Received cash for the sale of equipment that had cost $59,600, yielding a $3,100 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit.
Exercise 16-12 (Algo) Part 1 Required: (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021. (Amounts to be deducted should be indicated with a minus sign.) X Answer is not complete. IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2021 Cash flows from operating activities Net income ✓$ 121,510 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense Gain on sale of plant assets ✓ Changes in current operating assets and liabilities Depreciation expense X Gain on sale of plant assets 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-end 69,600✔ 69,600 x (3,100) X $ $ $ 257,610 0 0 257,610 257,610