I need help with this cash flow statement?

Sigchi4life
Category:
Accounting
Price: $10 USD

Question description

The following financial statements and additional information are reported.


 

IKIBAN INC.
Comparative Balance Sheets
June 30, 2013 and 2012

2013

2012

 Assets

 Cash

$

113,400

$

69,800

 Accounts receivable, net

69,600

51,300

 Inventory

66,600

96,000

 Prepaid expenses

5,600

4,700

 Equipment

123,100

112,000

 Accum. depreciation—Equipment

(28,100

)

(10,400

)

 Total assets

$

350,200

$

323,400

 Liabilities and Equity

 Accounts payable

$

26,900

$

32,200

 Wages payable

7,900

16,300

 Income taxes payable

2,800

3,700

 Notes payable (long term)

48,000

74,000

 Common stock, $5 par value

239,000

189,000

 Retained earnings

25,600

8,200

 Total liabilities and equity

$

350,200

$

323,400

 
 

IKIBAN INC.
Income Statement
For Year Ended June 30, 2013

 Sales

$

678,000  

 Cost of goods sold

409,000  

 Gross profit

269,000  

 Operating expenses

 Depreciation expense

$

58,400  

 Other expenses

66,900  

 Total operating expenses

125,300  

143,700 

 Other gains (losses)

 Gain on sale of equipment

2,900  

 Income before taxes

146,600  

 Income taxes expense

58,640  

 Net income

$

87,960  

 
 

Additional Information

a.

A $26,000 note payable is retired at its $26,000 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 $60,000 cash.

d.

Received cash for the sale of equipment that had cost $48,900, yielding a $2,900 gain.

e.

Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.

f.

All purchases and sales of merchandise inventory are on credit.


Tutor Answer

(Top Tutor) Daniel C.
(997)
School: Duke University
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