Can someone complete this? The following financial statements and additional inf

ID: 2525946 • Letter: C

Question

Can someone complete this?

The following financial statements and additional information are reported. IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $58,600 Other expenses 67,000 Total operating expenses $678,000 411,000 267,000 125,600 141,400 2,000 143,400 43.890 $ 99,510 2016 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 Assets Cash $ 87,500 Accounts receivable, net 65,000 Inventory 63,800 Prepaid expenses 4,400 Total current assets 220,700 Equipment 124,000 Accum. depreciation--Equipment (27,000) Total assets $317,700 Liabilities and Equity Accounts payable $ 25,000 Wages payable 6,000 Income taxes payable 3,400 Total current liabilities 34,400 Notes payable (long term) 30,000 Total liabilities 64,400 Equity Common stock, $5 par value 220,000 Retained earnings 33,300 Total liabilities and equity $317,700 $ 44,000 51,000 +14... 86,500 - 22,78. 5,400 - 186,900 115,000 (9,000) $292,900 $ 30,000 -5.00 15,000 - Jag 3,800 -4.0 48,800 60,000 108,800 160,000 24,100 $292,900

Explanation / Answer

Answer:

IKIBAN, INC.

Statement of Cash Flows (Indirect Method)

For Year Ended June 30, 2017

Cash flows from operating activities

Net income

$99,510

Adjustments to reconcile net income to net
cash provided by operating activities

Income statement items not affecting cash

Depreciation expense

58,600

Gain on sale of plant assets

-2,000

Changes in current operating assets and liabilities

Increase in accounts receivable

-14,000

Decrease in inventory

22,700

Decrease in prepaid expenses

1,000

Decrease in accounts payable

-5,000

Decrease in wages payable

-9,000

Decrease in income taxes payable

-400

51,900

Net cash provided by operating activities

151,410

Cash flows from investing activities

Cash received from sale of equipment

10,000

Cash paid for equipment

-57,600

Net cash used in investing activities

-47600

Cash flows from financing activities

Cash received from stock issuance

60,000

Cash paid to retire notes

-30,000

Cash paid for dividends

-90,310

Net cash used in financing activities

-60310

Net increase (decrease) in cash

43,500

Cash balance at prior year-end

44,000

Cash balance at current year-end

87500