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The following financial statements and additional information are reported IKIBAN INC. Comparative Balance Sheets June 30, 20

Additional Information a. A $48.400 note payable is retired at its $48,400 carrying (book) value in exchange for cash. b. The

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Answer #1
IKIBAN INC.
Statement of Cash Flows (Direct Method)
For Year ended June 30, 2019
Cash flows from Operating Activities
Cash received from customers           767,500
Cash paid to suppliers         (416,300)

Cash paid for operating expenses

          (98,000)

Cash paid for income tax

          (48,890)
Net cash flow from Operating Activities           204,310

Cash flows from Investing Activities:

Cash paid to purchase equipment           (80,600)
Cash proceed from sale equipment              12,300
Net cash flow from investing activities           (68,300)
Cash flows from Financing Activities:
Cash paid to retire note payable           (48,400)
Proceeds from issuance of common stock              83,000
Cash dividend paid         (163,910)
Net cash flow from financing activities         (129,310)
Net increase (decrease) in cash                6,700
Cash balance at prior year end              67,000
Cash balance at current year end             73,700
Working Notes
1 Cash received from customers = Beginning accounts receivable + Sales - Ending accounts receivable
Cash received from customers = $74,000 + $793,000 - $99,500
Cash received from customers = $767,500
2 Inventory purchased = Ending inventory + Cost of goods sold - Beginning inventory
Inventory purchased = $86,800 + $434,000 - $121,000
Inventory purchased = $399,800
3 Cash paid to suppliers = Beginning accounts payable + Inventory purchased - Ending accounts payable
Cash paid to suppliers = $64,500 + $399,800 - $48,000
Cash paid to suppliers = $416,300
4 Cash paid for operating expenses = Other operating expenses + Beginning wages payable - Ending wages payable + Ending prepaid expenses - Beginning prepaid expenses
Cash paid for operating expenses = $90,000 + $19,600 - $8,300 + $6,700 - $10,000
Cash paid for operating expenses = $98,000
5 Cash paid for income tax = Beginning income taxes payable + Income taxes expense - Ending income taxes payable
Cash paid for income tax = $8400 + $46190 - $5700
Cash paid for income tax = $48890
6 Depreciation on equipment sold = Beginning accumulated depreciation + Depreciation expense - Ending accumulated depreciation
Depreciation on equipment sold = 20,500 + 81,600 - 38,500
Depreciation on equipment sold = $63600
7 Proceed from sale of equipment = Cost of equipment sold - Depreciation on equipment sold + Gain on equipment sold
Proceed from sale of equipment = 71,600 - 63,600 + 4,300
Proceed from sale of equipment = $12,300
8 Dividend = Beginning retained earnings + Net income - Ending retained earnings
Dividend = 31000 + 145510 - 12600
Dividend = $163,910
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