Required information
Exercise 16-12 (Algo) Indirect: Preparing statement of cash
flows LO P2, P3, A1
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[The following information applies to the questions
displayed below.]
The following financial statements and additional information are
reported.
IKIBAN INCORPORATED
Comparative Balance Sheets
At June 30
2021
2020
Assets
Cash
$ 102,700
$ 52,000
Accounts receivable, net
77,000
59,000
Inventory
71,800
98,500
Prepaid expenses
5,200
7,000
Total current assets
256,700
216,500
Equipment
132,000
123,000
Accumulated depreciation—Equipment
(31,000)
(13,000)
Total assets
$ 357,700
$ 326,500
Liabilities and Equity
Accounts payable
$ 33,000
$ 42,000
Wages payable
6,800
16,600
Income taxes payable
4,200
5,400
Total current liabilities
44,000
64,000
Notes payable (long term)
38,000
68,000
Total liabilities
82,000
132,000
Equity
Common stock, $5 par value
236,000
168,000
Retained earnings
39,700
26,500
Total liabilities and equity
$ 357,700
$ 326,500
IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2021
Sales
$ 718,000
Cost of goods sold
419,000
Gross profit
299,000
Operating expenses (excluding depreciation)
75,000
Depreciation expense
66,600
157,400
Other gains (losses)
Gain on sale of equipment
2,800
Income before taxes
160,200
Income taxes expense
44,690
Net income
$ 115,510
Additional Information
A $30,000 notes payable is retired at its $30,000 carrying
(book) value in exchange for cash.
The only changes affecting retained earnings are net income and
cash dividends paid.
New equipment is acquired for $65,600 cash.
Received cash for the sale of equipment that had cost $56,600,
yielding a $2,800 gain.
Prepaid Expenses and Wages Payable relate to Operating Expenses
on the income statement.
All purchases and sales of inventory are on credit.
Exercise 16-12 (Algo) Part 1
Required:
(1) Prepare a statement of cash flows
using the indirect method for the year ended
June 30, 2021. (Amounts to be deducted should be
indicated with a minus sign.)
KIBAN, INCORPORATED atatement of Cash Flow Indirect Method For Year Ended June 30, 2021 Cash flow from operating activities Adjustments to reconcile not income to net cash provided by operating activities Income statement tam not affecting cam Changes in current operating Assets and abilities s Cash flows from investing advies Cash flows from financing activities 5 Not increase (decrease in cash Cash balance at prior year-end Cash balance Aurontyear and 5