[The following information applies to the questions displayed below. lements ndd
ID: 2401533 • Letter: #
Question
[The following information applies to the questions displayed below. lements nddina informaton are reported IKIBAN INC. Comparative Balance Sheots June 30, 2017 and 2016 2017 2016 Assets Cash ?ccounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets $ 93,100 68,000 75,000 87,800 122, 500 10,200 288, 700 275,700 148,000 139,000 101,000 6, 800 (39, 000 (21,000) 397,700 $393, 700 Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total 1iabilities Equity Common stock, S5 par value Retained earnings S 49,000 66,000 19,800 8, 600 94,400 84,000 117,200 178, 400 8,400 5, 800 63,200 54,000 268, 000 184, 000 12,500 31,300 $397,700 393, 700 Total liabilities and equity ?K? BAN INC. Income Statement June 30, 2017 Sales Cost of goods Gross profit operating expenses $798,000 435,000 363,000 sold Depreciation expense $82, 600Explanation / Answer
Answer
Cash Flow Statement
Detail
Net
Cash Flow from Operating Activities
Net Income before taxes
193,800
Add: Non cash and Non operating Expenses
Depreciation
82,600
Less: Non cash and Non Operating Incomes
Gain on sale of Equipment
(4,400)
Working Capital Changes
Increase in Accounts Receivable
(26,000)
Decrease in Inventory
34,700
Decrease in Prepaid expenses
3,400
Decrease in Accounts Payable
(17,000)
Decrease in Wages payable
(11,400)
Income Taxes Paid
(49,090)
Cash Flow from Operating Activities (A)
206,610
Cash Flow from Investing Activities
Sale of Equipment
12,400
Purchases of Equipment
(81,600)
Cash Used in Investing Activities (B)
(69,200)
Cash Flow from Financing Activities
Payment of note
(30,000)
Dividend Paid [147,510 + 18,800 (Decrease in Retained Earnings]
(166,310)
Issue of Common Shares
84,000
Cash used in Financing Activities ( C)
(112,310)
Increase in Cash (A+B+C)
25,100
Opening Cash
68,000
Closing Cash
93,100
Euipment
Beg. Bal
139,000
Cash
12,400
Acc. Depreciation
64,600
P&l (Profit on sale)
4,400
Bank (Purchases)
81,600
Closing Bal.
148,000
Total
225,000
Total
225,000
Acc. Depreciation - Equipment
Beg. Bal
21,000
Equipment (Sold) (Bal.)
64,600
P&L (Current Year)
82,600
Closing Bal.
39,000
Total
103,600
Total
103,600
Income Tax payable
Beg. Bal
8,600
Bank (Paid)
49,090
P&L (Current Year)
46,290
Closing Bal.
5,800
Total
54,890
Total
54,890
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Cash Flow Statement
Detail
Net
Cash Flow from Operating Activities
Net Income before taxes
193,800
Add: Non cash and Non operating Expenses
Depreciation
82,600
Less: Non cash and Non Operating Incomes
Gain on sale of Equipment
(4,400)
Working Capital Changes
Increase in Accounts Receivable
(26,000)
Decrease in Inventory
34,700
Decrease in Prepaid expenses
3,400
Decrease in Accounts Payable
(17,000)
Decrease in Wages payable
(11,400)
Income Taxes Paid
(49,090)
Cash Flow from Operating Activities (A)
206,610
Cash Flow from Investing Activities
Sale of Equipment
12,400
Purchases of Equipment
(81,600)
Cash Used in Investing Activities (B)
(69,200)
Cash Flow from Financing Activities
Payment of note
(30,000)
Dividend Paid [147,510 + 18,800 (Decrease in Retained Earnings]
(166,310)
Issue of Common Shares
84,000
Cash used in Financing Activities ( C)
(112,310)
Increase in Cash (A+B+C)
25,100
Opening Cash
68,000
Closing Cash
93,100
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