Answer Happy

Required information Exercise 12-12 (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. 2020 IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 Assets Cash $ 100,900 Accounts receivable, net 81,500 Inventory 74,800 Prepaid expenses 5,500 Total current assets 262,700 Equipment 135,000 Accumulated depreciation-Equipment (32,500) Total assets $ 365,200 Liabilities and Equity Accounts payable $ 36,000 Wages payable 7,100 Income taxes payable 4,500 Total current liabilities 47,600 Notes payable (long term) 41,000 Total liabilities 88,600 Equity Common stock, $5 par value 242,000 Retained earnings 34,600 Total liabilities and equity $ 365,200 $ 55,000 62,000 103,000 7,600 227,600 126,000 (14,500) $ 339, 100 $ 46,500 17,200 6,000 69, 700 71,000 140, 700 171,000 27,400 $ 339, 100
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 $ 733,000 422,000 311,000 78,000 69,600 163,400 3,100 166,500 44,990 $ 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 12-12 (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 ܙ ܫܘܩܪܶܗ ܗ ܘ ܗ . ܚ ܝ. ܢܫܢ: ܫܝܐ
Exercise 12-12 (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 $ 121,510 Cash flows from operating activities Net income 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 69,600 (3,100) Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable (19,500) 28,200 2,100 (10,500) (10,100)
NAAFAARA IN PARANAVARRA inn! Required information Decrease in income taxes payable (1,500) $ 176,710 Net cash provided by operating activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment (68,600) (68,600) Net cash used in investing activities Cash flows from financing activities Cash received from stock issuance Cash paid to retire notes Cash paid for dividends (30,000) (30,000) 78,110 $ Net cash used in financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 78,110
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 12-12 (Algo) Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2021. = Choose Numerator: Operating cash flows Cash Flow on Total Assets Ratio 1 Choose Denominator: Cash Flow on Total Assets Ratio 1 Average total assets Cash flow on total assets ratio 1 = =