Question

Exercise 12-11 Indirect: Preparing statement of cash flows LO P1, P2, P3, A1 [The following information applies to the questions displayed belowj The following financial statements and additional information are reported. IKIBAN Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total 1iabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity s 87,500 44, 000 51,000 86, 500 5, 400 186,900 115,000 65,000 63, 800 4, 400 220,700 124,000 (27,000) (9,000) $317,700 $292, 900 s 25, 000 6, 000 3, 400 34, 400 30, 000 64, 400 30,00o 15,000 3, 800 48, 800 60, 000 108,800 220,000 160,000 24,100 33, 300 $317,700 292,900 IKIBAN INC. Income Statement For Year Ended June 30, 2017 $678,000 411,000 267,000 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $58, 600 67,000 Other expenses Total operating expenses 125, 600 141,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,000 143,400 43, 890 99,510 Additional Information note payable is retired at its $30,000 carrying (book) value in exchange for cash. a. A $30,000 b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $57600 cash. d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit. Exercise 12-12B Direct: Preparing statement of cash flows LO P1, P3, P5 Using the direct method, prepare the statement of cash flows for the year ended June 30, 2017. (Amo indicated with a minus sign.) 8 Answer is not complete. IKIBAN, INC. Statement of Cash Flows (Direct Method) For Year Ended June 30, 2017 Cash flows from operating activities Cash received from customers 。|$ 664,000 Decrease in merchandise inventory393.300 Cash paid for operating expenses 61.590 Decrease in income tax payable 57,700 Net cash provided by operating 1,176,590 activities Cash flows from investing activities 10,000の 57,600 (47.600) 20,000 Cash flows from financing activities 60.000 30,000 90,3103 180.310 S 1.376,900 Net increase (decrease) in cash 30.000 90,310 180,310 S 1,376,900 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end 44,000의 S 1,420,900

Answer 1

Cashflow Statement:
Cashflows from operating activities:
Cash received from customers (678000+51000-65000)					664000
Cash paid to suppliers (411000+63800-86500+30000-25000)					-393300
Cash paid for expenses (67000+4400-5400+15000-6000)					-75000
Income tax paid (43890+3800-3400)					-44290
Net cash provided from operating activities					151410
Cashflows from Investing activities:
Purchase of equipment				-57600
Sale of eqipment				10000
(48600-40600+2000)
Net cash used in investing activities					-47600
Cashflows from financing activities:
Issue of Stockck				60000
Dividend paid (24100+99510-33300)				-90310
Note repiad				-30000
Net cash used in financing activities					-60310
Net cassh increase					43500
Add: Beginning balance of cash					44000
Ending balance of cash					87500