Required information [The following information applies to the questions displayed below.) The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 $ 96,700 92,000 81,800 6,200 At June 30. Assets Cash 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 For Sales Cost of goods sold Gross profit 276,700 142,000 (36,000) $ 382,700 $ 43,000 7,800 5,200 56,000 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 48,000 104,000 256,000 22,700 $382,700 IKIBAN INCORPORATED Income Statement Year Ended June 30, 2021 Operating expenses (excluding depreciation) Depreciation expense 2020 $ 62,000 69,000 113,500 9,000 253,500 133,000 (18,000) $368,500 $ 57,000 18,600 7,400 83,000 78,000 161,000 178,000 29,500 $368,500 768,000 429,000 339,000 85,000 76,600 177,400 3,800 181,200 45,690 135,510 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 $75,600 cash. d. Received cash for the sale of equipment that had cost $66,600, yielding a $3,800 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 [The following information applies to the questions displayed below.) The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 $ 96,700 92,000 81,800 6,200 At June 30. Assets Cash 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 For Sales Cost of goods sold Gross profit 276,700 142,000 (36,000) $ 382,700 $ 43,000 7,800 5,200 56,000 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 48,000 104,000 256,000 22,700 $382,700 IKIBAN INCORPORATED Income Statement Year Ended June 30, 2021 Operating expenses (excluding depreciation) Depreciation expense 2020 $ 62,000 69,000 113,500 9,000 253,500 133,000 (18,000) $368,500 $ 57,000 18,600 7,400 83,000 78,000 161,000 178,000 29,500 $368,500 768,000 429,000 339,000 85,000 76,600 177,400 3,800 181,200 45,690 135,510 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 $75,600 cash. d. Received cash for the sale of equipment that had cost $66,600, yielding a $3,800 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.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing
Section: Chapter Questions
Problem 14E
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Transcribed Image Text: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.)
Cash flows from operating activities
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
Cash flows from investing activities
IKIBAN, INCORPORATED
Statement of Cash Flows (Indirect Method)
For Year Ended June 30, 2021
Cash flows from financing activities
Net increase (decrease) in cash
Cash balance at prior year-end
Cash balance at current year-end
$
$
$
0
0
0
0
0
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.)
The following financial statements and additional information are reported.
IKIBAN INCORPORATED
Comparative Balance Sheets
2021
At June 30.
Assets
Cash
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
$ 96,700
92,000
81,800
6,200
276,700
142,000
(36,000)
$ 382,700
Other gains (losses)
Gain on sale of equipment
Income before taxes
Income taxes expense.
Net incone
$ 43,000
7,800
5,200
56,000
48,000
104,000
IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2021
256,000
22,700
$ 382,700
Operating expenses (excluding depreciation)
Depreciation expense
2020
$ 62,000
69,000
113,500
9,000
253,500
133,000
(18,000)
$368,500
$ 57,000
18,600
7,400
83,000
78,000
161,000
178,000
29,500
$368,500
$ 768,000
429,000
339,000
85,000
76,600
177,400
3,800
181,200
45,690
$ 135,510
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 $75,600 cash.
d. Received cash for the sale of equipment that had cost $66,600, yielding a $3,800 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.
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