Answer:
Ikiban Inc.
Statement of Cash flows
For the Year Ended June 30, 2017
Cash flow from operating activities:
Net income $117,510
Adjustments to net income:
- Depreciation expense $67,600
- Decrease in inventory $27,200
- Decrease in prepaid expenses $1,900
- Increase in accounts receivable ($18,500)
- Gain from sale of equipment ($3,000)
- Decrease in accounts payable ($9,500)
- Decrease in wages payable ($9,900)
- Decrease in taxes payable ($2,800) <u> $53,000</u>
Net cash flow from operating activities $170,510
Cash flow from investing activities:
Purchase of new equipment ($67,600)
Disposal of old equipment <u> $13,500</u>
Net cash flow from investing activities ($54,100)
Cash flow from financing activities:
Issuance of common stock $69,000
Retirement of note payable ($30,000)
Distributed dividends <u>($106,310)</u>
Net cash flow from financing activities ($67,310)
Net cash increase $49,100
<u>Cash balance June 30, 2016 $53,000</u>
Cash balance June 30, 2017 $102,100
