The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2020 $ 105,700 69,500 66,800 4,700 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 246,700 127,000 (28,500) $ 345,200 $ 28,000 6,300 3,700 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 38,000 33,000 71,000 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2020 226,000 48,200 $ 345,200 Operating expenses (excluding depreciation) Depreciation expense 2019 $ 47,000 54,000 91,000 6,000 198,000 118,000 (10,500) $ 305,500 $ 34,500 15,600 4,400 54,500 63,000 117,500 163,000 25,000 $ 305,500 $ 693,000 414,000 279,000 70,000 61,600 147,400 2,300 149,700 44,190 $ 105,510 Additional Information 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 $60,600 cash. d. Received cash for the sale of equipment that had cost $51,600, yielding a $2,300 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income stateme f. All purchases and sales of inventory are on credit.
The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2020 $ 105,700 69,500 66,800 4,700 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 246,700 127,000 (28,500) $ 345,200 $ 28,000 6,300 3,700 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 38,000 33,000 71,000 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2020 226,000 48,200 $ 345,200 Operating expenses (excluding depreciation) Depreciation expense 2019 $ 47,000 54,000 91,000 6,000 198,000 118,000 (10,500) $ 305,500 $ 34,500 15,600 4,400 54,500 63,000 117,500 163,000 25,000 $ 305,500 $ 693,000 414,000 279,000 70,000 61,600 147,400 2,300 149,700 44,190 $ 105,510 Additional Information 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 $60,600 cash. d. Received cash for the sale of equipment that had cost $51,600, yielding a $2,300 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income stateme 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:Exercise 12-12 (Algo) Part 1
Required:
(1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2020.
Note: Amounts to be deducted should be indicated with a minus sign.
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
Depreciation expense
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, 2019
Cash flows from financing activities
Net increase (decrease) in cash
Cash balance at prior year-end
Cash balance at current year-end
$
105,510
61,600
$ 167,110
0
$
0
$ 167,110
167,110
![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
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
Income before taxes
Income taxes expense
Net income
2020
Additional Information
$ 105,700
69,500
66,800
4,700
IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2020
246,700
127,000
(28,500)
$ 345,200
Exercise 12-12 (Algo) Part 1
$ 28,000
6,300
3,700
38,000
33,000
71,000
Operating expenses (excluding depreciation)
Depreciation expense
226,000
48,200
$ 345,200
2019
$ 47,000
54,000
91,000
6,000
198,000
118,000
(10,500)
$ 305,500
$ 34,500
15,600
4,400
54,500
63,000
117,500
163,000
25,000
$ 305,500
$ 693,000
414,000
279,000
70,000
61,600
147,400
2,300
149,700
44,190
$ 105,510
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 $60,600 cash.
d. Received cash for the sale of equipment that had cost $51,600, yielding a $2,300 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa880cc3d-71b2-44bc-9eb8-ccb18aa2c0ed%2Fc3abd13f-316c-4dcb-af86-8a57912c8c35%2F76hvvr_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
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
Income before taxes
Income taxes expense
Net income
2020
Additional Information
$ 105,700
69,500
66,800
4,700
IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2020
246,700
127,000
(28,500)
$ 345,200
Exercise 12-12 (Algo) Part 1
$ 28,000
6,300
3,700
38,000
33,000
71,000
Operating expenses (excluding depreciation)
Depreciation expense
226,000
48,200
$ 345,200
2019
$ 47,000
54,000
91,000
6,000
198,000
118,000
(10,500)
$ 305,500
$ 34,500
15,600
4,400
54,500
63,000
117,500
163,000
25,000
$ 305,500
$ 693,000
414,000
279,000
70,000
61,600
147,400
2,300
149,700
44,190
$ 105,510
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 $60,600 cash.
d. Received cash for the sale of equipment that had cost $51,600, yielding a $2,300 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.
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