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. At June 30 Assets Cash IKIBAN INCORPORATED Comparative Balance Sheets Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit 2020 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 100,900 81,500 74,800 5,500 Additional Information 262,700 135,000 (32,500) $365,200 $ 36,000 7,100 4,500 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2020 47,600 41,000 88,600 242,000 34,600 $365,200 Operating expenses (excluding depreciation) Depreciation expense 2019 $ 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 $ 733,000 422,000 311,000 78,000 69,600 163,400 3,100 166,500 44,990 $ 121,510 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 $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.
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. At June 30 Assets Cash IKIBAN INCORPORATED Comparative Balance Sheets Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit 2020 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 100,900 81,500 74,800 5,500 Additional Information 262,700 135,000 (32,500) $365,200 $ 36,000 7,100 4,500 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2020 47,600 41,000 88,600 242,000 34,600 $365,200 Operating expenses (excluding depreciation) Depreciation expense 2019 $ 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 $ 733,000 422,000 311,000 78,000 69,600 163,400 3,100 166,500 44,990 $ 121,510 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 $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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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.
At June 30
Assets
Cash
IKIBAN INCORPORATED
Comparative Balance Sheets
Accounts receivable, net
Inventory
Prepaid expenses
Total current assets
Equipment
Accumulated depreciation-Equipment
Total assets
Liabilities and Equity
Accounts payable
Wages payable
Income taxes payable
Total current liabilities
Notes payable (long term)
Total liabilities
Equity
Common stock, $5 par value
Retained earnings
Total liabilities and equity
Sales
Cost of goods sold
Gross profit
2020
Other gains (losses)
Gain on sale of equipment
Income before taxes
Income taxes expense
Net income
$ 100,900
81,500
74,800
5,500
Additional Information
262,700
135,000
(32,500)
$365,200
$ 36,000
7,100
4,500
IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2020
47,600
41,000
88,600
242,000
34,600
$365,200
Operating expenses (excluding depreciation)
Depreciation expense
2019
$ 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
$ 733,000
422,000
311,000
78,000
69,600
163,400
3,100
166,500
44,990
$ 121,510
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 $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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F756650b3-18d1-4b86-ac9b-c71ad5c7bd76%2Fce3dc8a5-72c6-4701-9a2c-8c7f62883779%2F3muoj23_processed.png&w=3840&q=75)
Transcribed Image Text: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.
At June 30
Assets
Cash
IKIBAN INCORPORATED
Comparative Balance Sheets
Accounts receivable, net
Inventory
Prepaid expenses
Total current assets
Equipment
Accumulated depreciation-Equipment
Total assets
Liabilities and Equity
Accounts payable
Wages payable
Income taxes payable
Total current liabilities
Notes payable (long term)
Total liabilities
Equity
Common stock, $5 par value
Retained earnings
Total liabilities and equity
Sales
Cost of goods sold
Gross profit
2020
Other gains (losses)
Gain on sale of equipment
Income before taxes
Income taxes expense
Net income
$ 100,900
81,500
74,800
5,500
Additional Information
262,700
135,000
(32,500)
$365,200
$ 36,000
7,100
4,500
IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2020
47,600
41,000
88,600
242,000
34,600
$365,200
Operating expenses (excluding depreciation)
Depreciation expense
2019
$ 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
$ 733,000
422,000
311,000
78,000
69,600
163,400
3,100
166,500
44,990
$ 121,510
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 $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.
Transcribed Image Text:Depreciation expense
Gain on sale of plant assets
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
Changes in current operating assets and liabilities
Increase in accounts receivable
Decrease in accounts payable
Decrease in wages payable
Decrease in income taxes payable
Decrease in inventory
Decrease in prepaid expenses
IKIBAN, INCORPORATED
Statement of Cash Flows (Indirect Method)
For Year Ended June 30, 2019
Net cash provided by operating activities
Cash flows from investing activities
Cash paid for equipment
Cash received from sale of equipment
Cash flows from financing activities
Cash received from stock issuance
Cash paid for dividends
X Answer is not complete.
Net increase (decrease) in cash
Cash balance at prior year-end
Cash balance at current year-end
✓
✓
✓
✓
✓
✓
✓
>>
33
$ 121,510✔
69,600✔
(3,100)✔
(19,500)✔
(10,500) ✔
(10,100)✔
(1,500) ✔
28,200✔
2,100✔
(68,600) ✔
$ 176,710
(68,600)
0
S 108,110
$
108,110
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