1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
gavmur [86]
3 years ago
6

Prepare a statement of cash flows using the indirect method for the year ended June 30, 2019. (Amounts to be deducted should be

indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2018 2019 Assets 93,700 $67,000 Cash Accounts receivable, net 99,500 86,800 6,700 74,000 121,000 Inventory Prepaid expenses 10,000 272,000 138,000 Total current assets 286,700 147,000 Equipment Accum. depreciation-Equipment (38,500) (20,500) $395,200 $389,500 Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable $48,000 $64,500 8,300 5,700 19,600 8,400 Total current liabilities 62,000 92,500 Notes payable (long term) Total liabilities 53,000 115,000 83,000 175,500 Equity Common stock, $5 par value Retained earnings 266,000 183,000 31,000 14,200 Total liabilities and equity $395,200 $389,500 IKIBAN INC Income Statement For Year Ended June 30, 2019 Sales $793,000 434,000 359,000 Cost of goods sold Gross profit Operating expenses Depreciation expense $81,600 Other expenses 90,000 Total operating expenses 171,600 187,400 other gains (losses) Gain on sale of equipment 4,300 Income before taxes 191,700 46,190 Income taxes expense $145,510 Net income Additional Information a. A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $80,600 cash. d. Received cash for the sale of equipment that had cost $71,600, yielding a $4,300 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.

Business
1 answer:
natka813 [3]3 years ago
6 0

Answer:

                                      IKIBAN INC.

           Statement of cash flow using indirect method for

                           the year ended June 30, 2019

Particulars                                                                   Amount $

Cash flow from operating activities

Net Income                                                                  145,510

<em>Adjustments to reconcile net income to net</em>

<em>cash provided by operating activities   </em>

<u>Adjustment for non cash effects</u>

Depreciation                                                                 81,600

Gain on sale of equipment                                          -4,300

<u>Change in operating assets & liabilities</u>

Increase in accounts receivable                                 -25,500

Decrease in inventory                                                  34,200

Decrease in prepaid expenses                                    3,300

Decrease in accounts payable                                    -16,500

Decrease in wages payable                                        -11,300

Decrease in income taxes payable                             <u>-2,700  </u>

Net cash flow from operating activities (A)              204,310

Cash Flow from Investing activities

New equipment purchased                                        -80,600

Equipment sold                                                             <u>12,300</u>

Net cash Flow from Investing activities (B)        -68,300

Cash Flow from Financing activities  

Cash dividends paid                                                   -162,310

($31,000 + $145,510 - $14,200)

Common stock issued                                                  83,000

Notes payable paid                                                     <u>-30,000</u>

Net cash Flow from Financing activities (C)            -109,310

Net Change in cash = A+B+C                                   $26,700

($204,310 - $68,300 - $109,310)

Beginning cash balance                                          <u>$67,000</u>

Closing cash balance                                               <u> $93,700</u>

You might be interested in
Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a strong economy, with each outc
lozanna [386]

Answer:

B) $90,000

Explanation:

The market value of the unlevered equity can be calculated using the following formula:

Expected value = Σpx

Where:

p = the probability of each outcome =50% in this case for both weak and strong economy.

x = the present value of cash flow for each outcome which is $90,000 in case of weak economy and $117,000 in case of strong economy.

Expected value= 0.50(90,000(1+15%)^-1)+0.50(117,000(1+15%)^-1)

                         =0.50(78,260.87)+0.50(101,739.13)

                         =$90,000

So the answer is B) $90,000

5 0
2 years ago
On March​ 15, Maxwell Plush sold and shipped merchandise on account for​ $6,000 to Kittson Amusement​ Park, terms FOB shipping​
a_sh-v [17]

Answer:

(a)- Its assets will​ increase, as will its equity

Explanation:

The commercial terms state FOB shipping​ point therefore the transfer succeeds once the cargo enter the port.

The sale is thus completed. The revenue can be recognize thus, increasing the company's equity and assets.

Account receivable(+Assets)     debit

             Sales Revenue(+Equity)           credit

8 0
2 years ago
Which of the following should which of the following should be of concern when a company considers expanding into a new Internat
vladimir1956 [14]
I think it might be (all of the above)
8 0
3 years ago
Bernard did not glance at the visiting card given by his Chinese client and simply stuffed it in his pocket. Which socio cultura
Maru [420]
Behavior I'm pretty sure
3 0
3 years ago
Read 2 more answers
Describe the promotional mix in a few sentences.
natulia [17]

Answer:

It's a specific combination of the tools channels and processes you use to promote your offerings it's a what you say how you say it who you say it to what channels you use to reach them and how often you communicate

7 0
2 years ago
Other questions:
  • Greg, the CEO of Organic Market, wants managers and employees to instruct each other about the organization’s chosen values and
    9·1 answer
  • If a corporate bond with face value of $1,000 has an interest rate of seven percent paid once a year for a term of 10 years, wha
    6·1 answer
  • How to start a Media Company?
    11·1 answer
  • After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Si
    7·1 answer
  • I need help on Personal Finance.
    14·1 answer
  • Stock A's stock has a beta of 1.30, and its required return is 12.00%. Stock B's beta is 0.80. If the risk-free rate is 4.75%, w
    14·1 answer
  • Assume the spot rate for the British pound currently is £.6369 per $1. Also assume the one-year forward rate is £.6421 per $1. A
    15·1 answer
  • On April 18, Riley Co. made a short-term investment in 440 common shares of XLT Co. The purchase price is $56 per share and the
    9·1 answer
  • True or False:
    11·1 answer
  • Which of the following is an example of crowding out? Question 13 options: A decrease in the rate of growth of the money supply
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!