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 2020 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 Other gains (losses) Gain on sale of equipment $ 104,500 72,500 68,800 4,900 Income before taxes Income taxes expense Net income 250,700 129,000 (29,500) $ 350, 200 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2020 Additional Information $ 30,000 6,500 3,900 40,400 35,000 75,400 Operating expenses (excluding depreciation) Depreciation expense 230,000 44,800 $ 350,200 2019 $ 49,000 56,000 94,000 6,400 205,400 120,000 (11,500) $313,900 $ 37,500 16,000 4,800 58,300 65,000 123,300 165,000 25,600 $ 313,900 $703,000 416,000 287,000 72,000 63,600 151,400 2,500 153,900 44,390 $ 109,510 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 $62,600 cash. d. Received cash for the sale of equipment that had cost $53,600, yielding a $2,500 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 2020 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 Other gains (losses) Gain on sale of equipment $ 104,500 72,500 68,800 4,900 Income before taxes Income taxes expense Net income 250,700 129,000 (29,500) $ 350, 200 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2020 Additional Information $ 30,000 6,500 3,900 40,400 35,000 75,400 Operating expenses (excluding depreciation) Depreciation expense 230,000 44,800 $ 350,200 2019 $ 49,000 56,000 94,000 6,400 205,400 120,000 (11,500) $313,900 $ 37,500 16,000 4,800 58,300 65,000 123,300 165,000 25,600 $ 313,900 $703,000 416,000 287,000 72,000 63,600 151,400 2,500 153,900 44,390 $ 109,510 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 $62,600 cash. d. Received cash for the sale of equipment that had cost $53,600, yielding a $2,500 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
2020
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
Other gains (losses)
Gain on sale of equipment
$ 104,500
72,500
68,800
4,900
Income before taxes
Income taxes expense
Net income
250,700
129,000
(29,500)
$ 350, 200
IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2020
Additional Information
$ 30,000
6,500
3,900
40,400
35,000
75,400
Operating expenses (excluding depreciation)
Depreciation expense
230,000
44,800
$ 350,200
2019
$ 49,000
56,000
94,000
6,400
205,400
120,000
(11,500)
$313,900
$ 37,500
16,000
4,800
58,300
65,000
123,300
165,000
25,600
$ 313,900
$703,000
416,000
287,000
72,000
63,600
151,400
2,500
153,900
44,390
$ 109,510
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 $62,600 cash.
d. Received cash for the sale of equipment that had cost $53,600, yielding a $2,500 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%2Ffab3cc17-340b-44cf-840a-1255cd02c78f%2Ff7ffa6bf-4b3f-4dc4-aef9-b16a7e428c74%2Ff1q1zfr_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
2020
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
Other gains (losses)
Gain on sale of equipment
$ 104,500
72,500
68,800
4,900
Income before taxes
Income taxes expense
Net income
250,700
129,000
(29,500)
$ 350, 200
IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2020
Additional Information
$ 30,000
6,500
3,900
40,400
35,000
75,400
Operating expenses (excluding depreciation)
Depreciation expense
230,000
44,800
$ 350,200
2019
$ 49,000
56,000
94,000
6,400
205,400
120,000
(11,500)
$313,900
$ 37,500
16,000
4,800
58,300
65,000
123,300
165,000
25,600
$ 313,900
$703,000
416,000
287,000
72,000
63,600
151,400
2,500
153,900
44,390
$ 109,510
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 $62,600 cash.
d. Received cash for the sale of equipment that had cost $53,600, yielding a $2,500 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:Required information
Note: Amounts to be deducted should be indicated with a minus sign.
Cash flows from operating activities
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
Cash flows from investing activities
Changes in current operating assets and liabilities
Cash flows from financing activities
Net increase (decrease) in cash
Cash balance at prior year-end
Cash belance at current year-end
Exercise 12-12 (Algo) Part 2
Choose Numerator:
IKIBAN, INCORPORATED
Statement of Cash Flows (Indirect Method)
For Year Ended June 30, 2019
I
1
1
Cash Flow on Total Assets Ratio
/Choose Denominator: =
(2) Compute the company's cash flow on total assets ratio for its fiscal year 2020.
=
$
=
$
$
Cash Flow on Total Assets Ratio
Cash flow on total assets ratio
0
0
0
0
0
0
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