rev 03092016QCCS44693 4 value 600 points Required informatio

     

     

rev: 03_09_2016_QC_CS-44693

4.

value:
6.00 points

Required information

Prepare a statement of cash flows for the year ended June 30, 2015, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

The following financial statements and additional information are reported.

Solution

IKIBAN INC Statement of Cash Flows   For the Year Ended June 30, 2015 Cash flows from operating activities Net Income   $    83,880 Adjustments to reconcile net income to : Depreciation expense $   58,300 Gain on sale of equipment $   (2,700) Increase in accounts receivable $ (18,100) 51900-70000 Decrease in inventory $   30,700 96600-65900 Decrease in prepaid expenses $      1,400 6100-4700 Decrease in accounts payable $   (6,400) 26300-32700 Decrease in wages payable $   (8,400) 7900-16300 Decrease in income tax payable $   (1,700) 2700-4400 $    53,100 Net cash provided by operating activities $ 136,980 Cash flows from investing activities Cash received from sale of equipment $   12,000 49200-(10400+58300-28800)+2700 Cash paid for sale of equipment $ (59,900) Net cash used by investing activities $ (47,900) Cash flows from financing activities Cash paid as dividend $ (66,980) 25000-8100-83880 Cash paid for retire notes $ (20,000) Cash received from issuance of common stock $   46,000 234000-188000 Net cash used by financing activities $ (40,980) Net Increase in cash and cash equivalents $    48,100 Cash and cash equivalents at beginning of period $    66,300 Cash and cash equivalents at end of period $ 114,400