Savod Required informetion Exercise 12-11 Indirect: Preparing statement of cash

Question

Savod Required informetion Exercise 12-11 Indirect: Preparing statement of cash flows LO P1, P2, P3. A1 The following information applies to the questions displayed below) The following financial statements and additional information are reported. ints IKIBAN INC Comparative Balance Sheets June 30, 2017 and 2016 015806 2017 2016 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total 1iabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity $ 77,900 $ 60,000 89,800 67,889 79,800 110,500 8, 600 252,700 246,100 148,000 131,e00 17,000 eBook 6,000 References 35,000 357,790 36.1 $ 41,000 54,000 7,60018,200 7,800 53,600 79,200 76,000 99,660155,200 5,00 46,000 76 252,000 176,000 100 28 990 $357,700 %360, 10e IKIBAN INC Incone Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $758,000 427,006 331,000 Depreciation expense $74,609

Explanation / Answer

Cash flow indirect method Cash flow from operating activities Net income 131510 Adjustments to reconcile the net income Gain on sale of equipment -3600 Depreciation expense 74600 Increase in accounts receivable -22000 Decrease in Inventory 30700 Decrease in prepaid expense 2600 Decrease in Accounts payable -13000 Decrease in Wages payable -10600 Decrease in income tax payable -2000 56700 Cash flow from operating activities 188210 Cash flow from Investing activities Equipment purchased -73600 Equipment sold 11600 Cash flow from Investing activities -62000 Cash flow from Financing activities Common stock 76000 Notes payable retired -30000 Dividends -154310 Cash flow from Financing activities -108310 Net Cash and cash equivalent 17900 Add Beginning cash and cash equivalent 60000 Ending cash and cash equivalent 77900

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