The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 At June 30 Assets 2020 Cash Accounts receivable, net Inventory Prepaid expenses Total current assets $ 79,700 84,500 76,800 5,700 246,700 137,000 (33,500) $ 350,200 $ 57,000 64,000 106,000 8,000 235,000 128,000 (15,500) $ 347,500 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 $38,000 7,300 4,700 50,000 32,600 82,600 $ 49,500 17,600 6,400 73,500 73,000 146,500 Equity Common stock, $5 par value Retained earnings Total liabilities and equity 246,000 21,600 $ 350,200 173,000 28,000 $ 347,500 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $ 743,000 424,000 319,000 80,000 71,600 167,400 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes 3,300 170,700 45,190 $ 125,510 Income taxes expense Net income Additional Information a. A $40,400 note payable is retired at its $40,400 carrying (book) value in exchange for b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $70,600 cash. d. Received cash for the sale of equipment that had cost $61,600, yielding a $3,300 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income sta f. All purchases and sales of inventory are on credit.
The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 At June 30 Assets 2020 Cash Accounts receivable, net Inventory Prepaid expenses Total current assets $ 79,700 84,500 76,800 5,700 246,700 137,000 (33,500) $ 350,200 $ 57,000 64,000 106,000 8,000 235,000 128,000 (15,500) $ 347,500 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 $38,000 7,300 4,700 50,000 32,600 82,600 $ 49,500 17,600 6,400 73,500 73,000 146,500 Equity Common stock, $5 par value Retained earnings Total liabilities and equity 246,000 21,600 $ 350,200 173,000 28,000 $ 347,500 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $ 743,000 424,000 319,000 80,000 71,600 167,400 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes 3,300 170,700 45,190 $ 125,510 Income taxes expense Net income Additional Information a. A $40,400 note payable is retired at its $40,400 carrying (book) value in exchange for b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $70,600 cash. d. Received cash for the sale of equipment that had cost $61,600, yielding a $3,300 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income sta 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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Transcribed Image Text: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
2020
$ 79,700
84,500
76,800
5,700
246,700
137,000
(33,500)
$ 350,200
$ 57,000
64,000
106,000
8,000
235,000
128,000
(15,500)
$ 347,500
Equipment
Accumulated depreciation-Equipment
Total assets
Liabilities and Equity
Accounts payable
Wages payable
Income taxes payable
Total current liabilities
$ 38,000
7,300
4,700
50,000
32,600
82,600
$ 49,500
17,600
6,400
73,500
73,000
146,500
Notes payable (long term)
Total liabilities
Equity
Common stock, $5 par value
Retained earnings
Total liabilities and equity
173,000
28,000
$ 347,500
246,000
21,600
$ 350,200
IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2021
$ 743,000
424,000
319,000
80,000
71,600
167,400
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
3,300
170,700
45,190
$ 125,510
Net income
Additional Information
a. A $40,400 note payable is retired at its $40,400 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 $70,600 cash.
d. Received cash for the sale of equipment that had cost $61,600, yielding a $3,300 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: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, 2021
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-end
$
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