Solution
IKIBAN INC. | ||
Statement of Cash Flows | ||
For the Year ended June 30th 2017 | ||
A. Cash Flows from Operating Activity | ||
Net Income | $ 135,510.00 | |
Adjustments to reconcile net income to net cash flows from Operating Activities | ||
Income statement items not affecting cash | ||
Depreciation expense | $ 76,600.00 | |
Gain on sale of Equipment | $ (3,800.00) | |
Cahnges In Current Operating Assets Liabilities | ||
Increase in Accounts Receivable | $ (23,000.00) | |
Decrease in Inventory | $ 31,700.00 | |
Decrease in Prepaid Expenses | $ 2,800.00 | |
Decrease in Accounts Payable | $ (14,000.00) | |
Decrease in Wages Payable | $ (10,800.00) | |
Decrease in Income taxes payable | $ (2,200.00) | |
$ 57,300.00 | ||
Net cash flow from Operating activities | $ 192,810.00 | |
B. Cash flows from Investing Activities | ||
Cash paid for Equipment | $ (75,600.00) | |
Cash received from Sale Of Equipment | $ 11,800.00 | |
Net Cash Used in Investing activities | $ (63,800.00) | |
C. Cash Flows from Financing activities | ||
Cash paid to retire notes | $ (30,000.00) | |
Cash received from stock issuance | $ 78,000.00 | |
Cash paid for Dividends | $ (142,310.00) | |
Cash flows from Financing activities | $ (94,310.00) | |
Net Increase (Decrease) in Cash [A+B+C] | $ 34,700.00 | |
Cash balance at prior Year-end | $ 62,000.00 | |
Cash balance at Current Year-end | $ 96,700.00 |
.
Cash flow on total assets ratio | ||||
Operating Cash flow | / | Average Total Assets | = | Cash flow on total assets ratio |
$ 192,810.00 | $ 375,600.00 | = | 0.51 |
Working
Cash received on sale of Equipment | |
Cost of equipment sold | $ 66,600.00 |
Less: Accumulated depreciation | $ 58,600.00 |
Book value of asset sold | $ 8,000.00 |
Profit on sale | $ 3,800.00 |
Cash received on sale of equipment | $ 11,800.00 |
.
Accumulated depreciation on equipment sold | |
Accumulated Depreciation beginning balance | $ 18,000.00 |
Add: Depreciation of current year | $ 76,600.00 |
Subtotal | $ 94,600.00 |
Ending balance of Accumulated depreciation | $ 36,000.00 |
Depreciation on asset sold | $ 58,600.00 |
.
Calculation of dividend paid | |
Beginning balance of retained earnings | $ 29,500.00 |
Add: Net income | $ 135,510.00 |
$ 165,010.00 | |
Less: Ending balance of Retained earnings | $ 22,700.00 |
Dividends paid in cash | $ 142,310.00 |
Required Information Exercise 12-11 Indirect: Preparing statement of cash flows LO P1, P2, P3, A1 The...
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