North Florida Cornmunt McGrawHill CampusMcGraw Hill Educa

× \\ North Florida Cornmunt × McGraw-Hill Campus-McGraw Hill Education c × wconnect.mheducation.com/flow/connect.html Assignmert correct 0 Required information [The following information applies to the questions displayed below] The following financial statements and additional information are reported IKIBAN INC. Conparative Balance Sheets June 36, 2817 and 2016 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment áccum. depreciation-Equipment Total assets 103,900$ 5e,ee9 57,000 95,580 4,009 69,880 252,700 209,100 138,080121,00 130 889) 12,0001 352,700 $318,100 Llabilsties and Equity Accounts payable ages payable Incone taxes payable Total current 1sabilieies Notes payable (long term) Total liabilitles tauity Common stock, 55 par valve Retained earnings S 31,000 6,600 39,000 16, 209 41,600 6e, 200 126, 200 166,000 72,.691580, 2 232,000 Total lLabilities and equity 352,700 5316,100

Solution

Workings:

IKIBAN INC.
Statement of cash flows (Indirect Method)
for the year ended June30, 2017
Cash flow from operating activities
Net Income	111510
Adjustments to reconcile net income to net cash provided by operating activities
a. Income statement items not afecting cash
Depreciation expense	64600
Gain on sale of equipment	-2600
b. Changes in current operating assets and liabilities
Accounts receivable	-17000
Inventory	25700
Prepaid expenses	1600
Accounts payable	-8000
Wages payable	-9600
Income taxes payable	-1000
Cash flow from operating activities		165210
Cash flow from investing activities
Purchase of new equipment	-63600
Sale of old equipment   (Note 1)	10600
Cash flow from investing activities		-53000
Cash flow from financing activities
Retirement of note payable	-30000
Cash dividends paid   (Note 2)	-94310
Issue of common stock (Note 3)	66000
Cash flow from financing activities		-58310
Net cash flow		53900
Beginning cash balance		50000
Ending cash balance		103900