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(Solved): The Following Financial Statements And Additional Information Are Reported. IKIBAN INC. Comparative ...


The following financial statements and additional information are reported.

IKIBAN INC.
Comparative Balance Sheets
June 30, 2019 and 2018

2019

2018

Assets

Cash

$

74,900

$

65,000

Accounts receivable, net

96,500

72,000

Inventory

84,800

118,000

Prepaid expenses

6,500

9,600

Total current assets

262,700

264,600

Equipment

145,000

136,000

Accum. depreciation—Equipment

(37,500

)

(19,500

)

Total assets

$

370,200

$

381,100

Liabilities and Equity

Accounts payable

$

46,000

$

61,500

Wages payable

8,100

19,200

Income taxes payable

5,500

8,000

Total current liabilities

59,600

88,700

Notes payable (long term)

34,200

81,000

Total liabilities

93,800

169,700

Equity

Common stock, $5 par value

262,000

181,000

Retained earnings

14,400

30,400

Total liabilities and equity

$

370,200

$

381,100

  

IKIBAN INC.
Income Statement
For Year Ended June 30, 2019

Sales

$

783,000

Cost of goods sold

432,000

Gross profit

351,000

Operating expenses

Depreciation expense

$

79,600

Other expenses

88,000

Total operating expenses

167,600

183,400

Other gains (losses)

Gain on sale of equipment

4,100

Income before taxes

187,500

Income taxes expense

45,990

Net income

$

141,510


Additional Information

  1. A $46,800 note payable is retired at its $46,800 carrying (book) value in exchange for cash.
  2. The only changes affecting retained earnings are net income and cash dividends paid.
  3. New equipment is acquired for $78,600 cash.
  4. Received cash for the sale of equipment that had cost $69,600, yielding a $4,100 gain.
  5. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
  6. All purchases and sales of inventory are on credit.


Using the direct method, prepare the statement of cash flows for the year ended June 30, 2019. (Amounts to be deducted should be indicated with a minus sign.)

IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities Cash fCash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at pri

IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities Cash flows from investing activities Cash flows from financing 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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