Question

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Required information Exercise 16-11 Indirect: Preparing statement of cash flows LO P1, P2, P3, A1 [The following information applies to the questions displayed below.] The following financial statements and additional information are reported IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. 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 $ 97,900 60,000 67,000 110,500 8,600 89,000 79,800 6,000 700246,100 272, 131,000 17,000 $377,700 360,100 140,000 35,000 $ 41,000 54,000 18,200 7,000 79,200 76,000 155,200 7,600 5,000 53,600 46,000 99,600 176,000 28,900 $377,700 $360,100 252,000 26,100

Answer 1

IKIBAN INC
Statement of Cash flows
For the Year Ended June 30, 2017
Cash flows from operating activities
Net Income		$ 131,510
Adjustments to reconcile net income to ;
Depreciation expense	$      74,600
Gain on sale of equipment	$      (3,600)
Increase in accounts receivable	$   (22,000)
Decrease in inventory	$      30,700
Decrease in prepaid expense	$        2,600
Decrease in accounts payable	$   (13,000)
Decrease in wages payable	$   (10,600)
Decrease in income tax payable	$      (2,000)
		$    56,700
Net cash provided by operating activities		$ 188,210
Cash flows from investing activities
Cash paid for purchase of equipment	$   (73,600)
Cash received from sale of equipment	$      11,600		64600-(17000+74600-35000)+3600
Net cash used by investing activities		$ (62,000)
Cash flows from financing activities
Cash paid for dividends	$ (134,310)		26100-28900-131510
Cash paid for retire note	$   (30,000)
Cash received from issuance of common stock	$      76,000
Net cash used by financing activities		$ (88,310)
Net Increase in cash and cash equivalents		$    37,900
Cash and cash equivalents at beginning of period		$    60,000
Cash and cash equivalents at end of period		$    97,900

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