Question

Required information (The following information applies to the questions displayed below.] The following financial statements and additional information are reported 2016 IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 Assets Cash $100,900 Accounts receivable, net 81,500 Inventory 74,800 Prepaid expenses 5,500 Total current assets 262,700 Equipment 135,000 Accum. depreciation-Equipment (32,500) Total assets $365,200 Liabilities and Equity Accounts payable $ 36,000 Wages payable 7,100 Income taxes payable 4,500 Total current liabilities 47,600 Notes payable (long term) 41,000 Total liabilities 88,600 Equity Common stock, $5 par value 242,000 Retained earnings 34,600 Total liabilities and equity $365,200 $ 55,000 62,000 103,000 7,600 227,600 126,000 (14,500) $339, 100 $ 46,500 17,200 6,000 69,700 71,000 140,700 171.000 27,400 $339,100 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $733,000 422, eee 311,000

Answer 1

IKIBAN, INC. Statement of Cash flows (Direct Method For Year Ended June 30, 2017 Cash flows from Operating Activities: Cash Recived from customers $ 713,500 Cash payments to suppliers $ (404,300) Cash payments for Other Expenses $ (86,000) Cash payments for Income Taxes IS (46.490) Net Cash provided by operating activities $ 176,710 Cash Flows from Investing Activities Sale of Equipment Purchase of Equipment Net Cash Used by Investing activities $ $ 11,100 (68,600) $ (57,500) $ $ | $ (30,000) 71,000 (114,310) Cash Flows from Financing Activities Repayment of long term notes payable Issuance of Common Stock Dividend Payments Net Cash used by Financing activities Net Increase (Decrease) in Cash Cash balance at prior year-end Cash balance at current year-end $ $ $ $ (73,310) 45,900 55,000 100,900

62,000 733,000 795,000 81,500 713,500 Working Notes : Cash Recived from customers Opening balance of Accounts Receivables $ Add: Sales $ $ Less: Closing balance of Accounts Receivables $ $ Cash payments to suppliers Cost of goods Sold $ add: Opening Balance of Accounts payables $ Closing Balance of Inventory $ $ Less: Closing balalnce of Accounts Pyables S Opening balance of Inventory $ $ Cash payments for Other Expenses Other Expenses $ Add: Opening balance of Wages Payable $ Closing balance of Prepaid Expenses $ $ Less: closing balance of Wages Payable $ Opening balance of Prepaid Expenses $ $ 422,000 46,500 74,800 543,300 36,000 103,000 404,300 78,000 17,200 5,500 100,700 7,100 7,600 86,000

Cash payments for Income Taxes Opening balance of Income Taxes payable Add: Income Tax Expensse during the year $ $ $ $ $ 6,000 44,990 50,990 4,500 46,490 Less: closing balance of Income Taxes payable Sale of Equipment Gross Value of Equipment Less: Depreciation of sale of Equipment Net cost of Equipment Add: Gain on sale of Equipment $ $ $ $ $ 59,600 51,600 8,000 3,100 11,100 Dividends paid Opening balance of Retained Earnings Add: Net Income $ $ $ $ $ 27,400 121,510 148,910 34,600 114,310 Less: Closing balance of Retained Earnings