Prepare a statement of cash flows using the indirect method for the year ended June 30, 2019. (Amounts to be deducted should be

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Prepare a statement of cash flows using the indirect method for the year ended June 30, 2019. (Amounts to be deducted should be

indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2018 2019 Assets 93,700 $67,000 Cash Accounts receivable, net 99,500 86,800 6,700 74,000 121,000 Inventory Prepaid expenses 10,000 272,000 138,000 Total current assets 286,700 147,000 Equipment Accum. depreciation-Equipment (38,500) (20,500) $395,200 $389,500 Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable $48,000 $64,500 8,300 5,700 19,600 8,400 Total current liabilities 62,000 92,500 Notes payable (long term) Total liabilities 53,000 115,000 83,000 175,500 Equity Common stock, $5 par value Retained earnings 266,000 183,000 31,000 14,200 Total liabilities and equity $395,200 $389,500 IKIBAN INC Income Statement For Year Ended June 30, 2019 Sales $793,000 434,000 359,000 Cost of goods sold Gross profit Operating expenses Depreciation expense $81,600 Other expenses 90,000 Total operating expenses 171,600 187,400 other gains (losses) Gain on sale of equipment 4,300 Income before taxes 191,700 46,190 Income taxes expense $145,510 Net income Additional Information 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 $80,600 cash. d. Received cash for the sale of equipment that had cost $71,600, yielding a $4,300 gain e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit.

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Free_Kalibri [3.7K] · Answer 1 · 2026-04-09T11:48:17+03:00

IKIBAN INC. Statement of cash flow using indirect method for the year ending June 30, 2019 Particulars Amount $ Cash flow from operating activities Net Income 145,510 Adjustments to reconcile net income to net cash provided by operating activities Adjustment for non cash effects Depreciation 81,600 Gain on sale of equipment -4,300 Change in operating assets & liabilities Increase in accounts receivable -25,500 Decrease in inventory 34,200 Decrease in prepaid expenses 3,300 Decrease in accounts payable -16,500 Decrease in wages payable -11,300 Decrease in income taxes payable -2,700 Net cash flow from operating activities (A) 204,310 Cash Flow from Investing activities New equipment purchased -80,600 Equipment sold 12,300 Net cash flow from Investing activities (B) -68,300 Cash Flow from Financing activities Cash dividends paid -162,310 Common stock issued 83,000 Notes payable paid -30,000 Net cash flow from Financing activities (C) -109,310 Net Change in cash = A+B+C $26,700 Beginning cash balance $67,000 Closing cash balance $93,700