Question

Cash Flows (Indirect) 6 Saved Required information [The following information applies to the questions displayed below.) The following financial statements and additional information are reporte 2018 IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 96,700 Accounts receivable, net 92,000 Inventory 81,800 Prepaid expenses 6,200 Total current assets 276, 700 Equipment 142,000 Accum. depreciation Equipment ( 36,000) Total assets $382,700 Liabilities and Equity Accounts payable $ 43,000 Wages payable 7,800 Income taxes payable 5,200 Total current liabilities 56,000 Notes payable (long term) 48,000 Total liabilities 104,000 Equity Common stock, $5 par value 256,000 Retained earnings 22, 700 Total liabilities and equity $382,700 $ 62,000 69,000 113,500 9,000 253,500 133,000 (18,000) $368,500 $ 57,000 18,600 7,400 83,000 78,000 161,000 178,000 29,500 $368,500 IKIBAN INC. Prey 1 of 1

Answer 1

$ 135,510 $ 76,600 (3,800) $ IKIBAN INC Statement of Cash Flows (Indirect Method) For year Ended June 30,2019 Cash flows from operating activities Net Income Addustments to reconcile net income to net cash flow from operating activities Income statement items not effecting cash Depreciation Gain on Sale of Investment Changes in Current operating assets and liabilities Increase in accounts receivables Decrease in Inventory Decrease in Prepaid Expenses Decrease in Accounts payable Decrease in Wages payable Decrease in Income Tax payable Net cash flow From operating activities Cash flows from investing activities: Cash from sale of Equipment Cash used for purchase of equipment Net cash flow from investing activities Cash flows from Financing activities: Cash paid for dividends Repayment of Notes payable Cash from sale of common stock Net cash flow from financing activities $ $ $ $ $ $ (23,000) 31,700 2,800 (14,000) (10,800) (2,200) $ 192,810 $ 11,800 (75,600) $ $ (63,800) $ (142,310) $ (30,000) $ 78,000 $ (94,310)

Net Increase (decrease) in cash Cash balance at prior year end Cash balance at current year end $ $ $ 34,700 62,000 96,700 $ Working Notes: Cash from sale of Equipment Gross Value of Equipment Less: Depreciation of sale of Equipment ($82600+$21000-$39000) Net cost of Equipment Add: Gain on sale of Equipment $ $ $ $ 66,600 58,600 8,000 3,800 11,800 Cash paid for dividends Opening balance of Retained earnings Add: Net Income $ $ $ 29,500 135,510 165,010 22,700 142,310 Less: closing balance of Retained earnings $ $