I need help with this cash flow statement?
Question Description
The following financial statements and additional information are reported. |
IKIBAN INC. |
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2013 |
2012 |
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Assets |
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Cash |
$ |
113,400 |
$ |
69,800 |
||||
Accounts receivable, net |
69,600 |
51,300 |
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Inventory |
66,600 |
96,000 |
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Prepaid expenses |
5,600 |
4,700 |
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Equipment |
123,100 |
112,000 |
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Accum. depreciation—Equipment |
(28,100 |
) |
(10,400 |
) |
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|
|
|
|
|
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Total assets |
$ |
350,200 |
$ |
323,400 |
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|
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Liabilities and Equity |
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Accounts payable |
$ |
26,900 |
$ |
32,200 |
||||
Wages payable |
7,900 |
16,300 |
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Income taxes payable |
2,800 |
3,700 |
||||||
Notes payable (long term) |
48,000 |
74,000 |
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Common stock, $5 par value |
239,000 |
189,000 |
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Retained earnings |
25,600 |
8,200 |
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|
|
|
|
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Total liabilities and equity |
$ |
350,200 |
$ |
323,400 |
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IKIBAN INC. |
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Sales |
$ |
678,000 |
||||
Cost of goods sold |
409,000 |
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|
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Gross profit |
269,000 |
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Operating expenses |
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Depreciation expense |
$ |
58,400 |
||||
Other expenses |
66,900 |
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|
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Total operating expenses |
125,300 |
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|
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143,700 |
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Other gains (losses) |
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Gain on sale of equipment |
2,900 |
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|
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Income before taxes |
146,600 |
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Income taxes expense |
58,640 |
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|
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Net income |
$ |
87,960 |
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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. |
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