The following information applies to the questions displeyed

The following information applies to the questions displeyed belowj The following financial statements and additional Information are reported. ?K?BANINC. Comparative Balance Sheets June 30, 2015 and 2014 2015 2014 Assets Cash Accounts recelvable, net Inventory Prepald expenses $10730063,80o 69,200 66,200 51,400 96,000 5,900 4,500 Total current assets Equipment Accum. depreciation-Equipment 247,200 129,700 217100 118,000 (28,500) 1o0o) Total assets $348,400$325,000 Liabilities and Equity Accounts payable Wages payable Income taxes payable $ 26,400 32,300 16,100 3,700 7,400 2,200 52,100 77,000 36,000 Total current liabilities Notes payable (long term) 56,000 92,000 231,000 129,100 Total liabilities Equity Common stock, $5 par value Retained earnings 188,000 7,900 25,400 Total liabilities and equity $348,400 $325,000

Solution

Cash flow Statement Cash flows from operating activiites: Net income for the periiod 80700 Adjustment required Depreciation 58600 Gaiin on sale of equipment -2400 Increase in Accounts receivable -17800 Decrease n inventory 29800 Decreasse in Prepaaid expense 1400 Decrease in Accounts payable -5900 Decrease in wages payab;e -8700 Decrease in income tax payable -1500 Net cash provided from operating activities 134200 Cash flows from investing activities: Purchasse of equipment -61200 sale of equipment 11700 (49500-40200+2400) Net cash used in Investing activities -49500 Cash flows from Financing activities Notes payable repayment -21000 Issue of stock 43000 Dividend paid (7900+80700-25400) -63200 Net cash provided from Financicng activities -41200 Net increase in cash 43500 Beginning balance in cash 63800 Ending balance in cash 107300