Required information Exercise 12-12 (Algo) Indirect: Preparing statement of cash flows LO P2, P3, A1 [The following information applies to the questions displayed below.] The following financial statements and additional information are reported. At June 30 Assets Cash IKIBAN INCORPORATED Comparative Balance Sheets Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit 2020 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 100,900 81,500 74,800 5,500 Additional Information 262,700 135,000 (32,500) $365,200 $ 36,000 7,100 4,500 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2020 47,600 41,000 88,600 242,000 34,600 $365,200 Operating expenses (excluding depreciation) Depreciation expense 2019 $ 55,000 62,000 103,000 7,600 227,600 126,000 (14,500) $ 339,100 $ 46,500 17,200 6,000 69,700 71,000 140, 700 171,000 27,400 $ 339,100 $ 733,000 422,000 311,000 78,000 69,600 163,400 3,100 166,500 44,990 $ 121,510 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 $68,600 cash. d. Received cash for the sale of equipment that had cost $59,600, yielding a $3,100 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit.
Required information Exercise 12-12 (Algo) Indirect: Preparing statement of cash flows LO P2, P3, A1 [The following information applies to the questions displayed below.] The following financial statements and additional information are reported. At June 30 Assets Cash IKIBAN INCORPORATED Comparative Balance Sheets Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit 2020 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 100,900 81,500 74,800 5,500 Additional Information 262,700 135,000 (32,500) $365,200 $ 36,000 7,100 4,500 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2020 47,600 41,000 88,600 242,000 34,600 $365,200 Operating expenses (excluding depreciation) Depreciation expense 2019 $ 55,000 62,000 103,000 7,600 227,600 126,000 (14,500) $ 339,100 $ 46,500 17,200 6,000 69,700 71,000 140, 700 171,000 27,400 $ 339,100 $ 733,000 422,000 311,000 78,000 69,600 163,400 3,100 166,500 44,990 $ 121,510 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 $68,600 cash. d. Received cash for the sale of equipment that had cost $59,600, yielding a $3,100 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter23: Statement Of Cash Flows
Section: Chapter Questions
Problem 10SPB
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