Required InformationExercise 12-12 (Static) Indirect: Preparing statement of cash flows LO P2, P3, A1[The following information applies to the questions displayed below.]The following financial statements and additional information are reported.IKIBAN INCORPORATEDComparative Balance Sheets20212020$ 87,50065,000$ 44,00051,00086,500At June 30AssetsCashAccounts receivable, netInventoryPrepaid expensesTotal current assetsEquipmentAccumulated depreciation-EquipmentTotal assetsLiabilities and EquityAccounts payableWages payableIncome taxes payableTotal current liabilitiesNotes payable (long term)Total liabilitiesEquityCommon stock, $5 par valueRetained earningsTotal liabilities and equitySalesCost of goods soldIKIBAN INCORPORATEDIncome Statement63,8004,4005,400220,700186,900124,000(27,000)$ 317,700$ 25,000115,000(9,000)$292,900$ 30,00015,0003,8006,0003,40034,40048,80030,00060,00064,400108,800220,000160,00033,300$317,70024,100For Year Ended June 30, 2021$292,900$ 678,000411,000267,00067,00058,600141,4002,000143,400Gross profitOperating expenses (excluding depreciation)Depreciation expenseOther gains (losses)Gain on sale of equipmentIncome before taxesIncome taxes expenseNet incomeAdditional Information43,898$ 99,510a. A $30,000 notes 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 $57,600 cash.d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 gain.e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement.f. All purchases and sales of inventory are on credit.Exercise 12-12 (Static) Part 1Required:(1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021.Note: Amounts to be deducted should be indicated with a minus sign.

Cash flow statement is the financial statement which reports the cash inflows and outflows of an…

Answered: Required: (1) Prepare a statement of…

Required: (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021. Note: Amounts to be deducted should be Indicated with a minus sign.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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