KIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 2020 Assets Cash $ 81,500 $ 54,000 Accounts receivable, net 80,000 61,000 Inventory 73,800 101,500 Prepaid expenses 5,400 7,400 Total current assets 240,700 223,900 Equipment 134,000 125,000 Accumulated depreciation—Equipment (32,000) (14,000) Total assets $ 342,700 $ 334,900 Liabilities and Equity Accounts payable $ 35,000 $ 45,000 Wages payable 7,000 17,000 Income taxes payable 4,400 5,800 Total current liabilities 46,400 67,800 Notes payable (long term) 32,000 70,000 Total liabilities 78,400 137,800 Equity Common stock, $5 par value 240,000 170,000 Retained earnings 24,300 27,100 Total liabilities and equity $ 342,700 $ 334,900 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales $ 728,000 Cost of goods sold 421,000 Gross profit 307,000 Operating expenses (excluding depreciation) 77,000 Depreciation expense 68,600 161,400 Other gains (losses) Gain on sale of equipment 3,000 Income before taxes 164,400 Income taxes expense 44,890 Net income $ 119,510 Additional Information A $38,000 note payable is retired at its $38,000 carrying (book) value in exchange for cash. The only changes affecting retained earnings are net income and cash dividends paid. New equipment is acquired for $67,600 cash. Received cash for the sale of equipment that had cost $58,600, yielding a $3,000 gain. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. 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, 2021. (Amounts to be deducted should be indicated with a minus sign.) Ikiban, Incorporated Statement of Cash Flows (Direct Method) For Year Ended June 30, 20212 Cash flows from operating activities $ - 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-emd $ -

KIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 2020 Assets Cash $ 81,500 $ 54,000 Accounts receivable, net 80,000 61,000 Inventory 73,800 101,500 Prepaid expenses 5,400 7,400 Total current assets 240,700 223,900 Equipment 134,000 125,000 Accumulated depreciation—Equipment (32,000) (14,000) Total assets $ 342,700 $ 334,900 Liabilities and Equity Accounts payable $ 35,000 $ 45,000 Wages payable 7,000 17,000 Income taxes payable 4,400 5,800 Total current liabilities 46,400 67,800 Notes payable (long term) 32,000 70,000 Total liabilities 78,400 137,800 Equity Common stock, $5 par value 240,000 170,000 Retained earnings 24,300 27,100 Total liabilities and equity $ 342,700 $ 334,900 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales $ 728,000 Cost of goods sold 421,000 Gross profit 307,000 Operating expenses (excluding depreciation) 77,000 Depreciation expense 68,600 161,400 Other gains (losses) Gain on sale of equipment 3,000 Income before taxes 164,400 Income taxes expense 44,890 Net income $ 119,510 Additional Information A $38,000 note payable is retired at its $38,000 carrying (book) value in exchange for cash. The only changes affecting retained earnings are net income and cash dividends paid. New equipment is acquired for $67,600 cash. Received cash for the sale of equipment that had cost $58,600, yielding a $3,000 gain. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. 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, 2021. (Amounts to be deducted should be indicated with a minus sign.) Ikiban, Incorporated Statement of Cash Flows (Direct Method) For Year Ended June 30, 20212 Cash flows from operating activities $ - 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-emd $ -

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

KIBAN INCORPORATED
Comparative Balance Sheets
At June 30	2021	2020
Assets
Cash	$ 81,500	$ 54,000
Accounts receivable, net	80,000	61,000
Inventory	73,800	101,500
Prepaid expenses	5,400	7,400
Total current assets	240,700	223,900
Equipment	134,000	125,000
Accumulated depreciation—Equipment	(32,000)	(14,000)
Total assets	$ 342,700	$ 334,900
Liabilities and Equity
Accounts payable	$ 35,000	$ 45,000
Wages payable	7,000	17,000
Income taxes payable	4,400	5,800
Total current liabilities	46,400	67,800
Notes payable (long term)	32,000	70,000
Total liabilities	78,400	137,800
Equity
Common stock, $5 par value	240,000	170,000
Retained earnings	24,300	27,100
Total liabilities and equity	$ 342,700	$ 334,900

IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2021
Sales	$ 728,000
Cost of goods sold	421,000
Gross profit	307,000
Operating expenses (excluding depreciation)	77,000
Depreciation expense	68,600
	161,400
Other gains (losses)
Gain on sale of equipment	3,000
Income before taxes	164,400
Income taxes expense	44,890
Net income	$ 119,510

Additional Information

A $38,000 note payable is retired at its $38,000 carrying (book) value in exchange for cash.
The only changes affecting retained earnings are net income and cash dividends paid.
New equipment is acquired for $67,600 cash.
Received cash for the sale of equipment that had cost $58,600, yielding a $3,000 gain.
Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement.
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, 2021. (Amounts to be deducted should be indicated with a minus sign.)

Ikiban, Incorporated
Statement of Cash Flows (Direct Method)
For Year Ended June 30, 20212
Cash flows from operating activities





		$ -
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-emd		$ -

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