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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 $105,100 Accounts receivable, net 71,000 Inventory 67,800 Prepaid expenses 4,800 Total current assets 248,700 Equipment 128,000 Accum. depreciation-Equipment (29,000) Total assets $347,700 Liabilities and Equity Accounts payable $ 29,000 Wages payable 6,400 Income taxes payable 3,800 Total current liabilities 39,200 Notes payable (long term) 34,000 Total liabilities 73,200 Equity Common stock, $5 par value 228,000 Retained earnings 46,500 Total liabilities and equity $347,700 $ 48,000 55,000 92,500 6,200 201,700 119,000 (11,000) $309,700 $ 36,000 15,800 4,600 56,400 64,000 120,400 164,000 25,300 $309,700 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $62,600 $698,000 415,000 283,000

Answer 1

Solution:

IKIBAN Inc.
Statement of Cash Flows (Partial)
For year ended 2017
Particulars	Details	Amount
Cash Flow from Operating Activities:
Net Income	$107,510.00
Adjustments to reconcile net income to net cash provided by operations:
Depreciation Expense	$62,600.00
Gain on sale of equipment	-$2,400.00
Increase in accounts receivables ($71,000 - $55,000)	-$16,000.00
Decrease in inventory ($92,500 - $67,800)	$24,700.00
Decrease in prepaid expenses ($6,200 - $4,800)	$1,400.00
Decrease in accounts payable ($36,000 - $29,000)	-$7,000.00
Decrease in wages payable ($15,800 - $6,400)	-$9,400.00
Decrease in income tax payable ($4,600 - $3,800)	-$800.00
Net Cash provided by operating activities		$160,610.00
Cash Flow from Investing Activities:
Purchase of equipment	-$61,600.00
Sale of equipment ($52,600 - $44,600 + 2,400)	$10,400.00
Net Cash used in Investing activities		-$51,200.00
Cash Flow from Financing Activities:
Proceed from issue of common stock ($228,000 - $164,000)	$64,000.00
Dividend Paid ($25,300 + $107,510 - $46,500)	-$86,310.00
Payment for retirement of note	-$30,000.00
Net Cash Provided by financing activities		-$52,310.00
Net Increase / (Decrease) in Cash		$57,100.00
Cash balance at beginning of year		$48,000.00
Cash balance at end of year		$105,100.00