Exdercise 16 10 Examples for class

Exdercise 16 10 Examples for class - Running Cash Flow...

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Running Cash Flow Example Througout Chapter 16 Beginning on Page 630 Ikiban Inc. Ikiban, Inc. June 30, 2008 and 2007 Income Statement 2008 2007 Category? For the Year Ending June 30, 2008 Sales $678,000 Assets COGS $411,000 Current Assets Gross Profit $267,000 Cash $87,500 $44,000 $43,500 Cash Operating Expenses AR $65,000 $51,000 $14,000 Operations Depreciation Expense $58,600 Inventory $63,800 $86,500 $(22,700) Operations Other Expenses $67,000 Prepaid Expenses $4,400 $5,400 $(1,000) Operations Total Operating Expenses $125,600 Total Current Assets $220,700 $186,900 $33,800 Other Gains / Losses Long-Term Assets Gain on Sale of Equipment $2,000 Equipment $124,000 $115,000 $9,000 Investing Income before Taxes $143,400 Accumulated Depreciation $(27,000) $(9,000) $(18,000) Operating Income Tax Expense $43,890 Total Assets $317,700 $292,900 $24,800 Net Income $99,510 Liabilities Current Liabilities AP $25,000 $30,000 $(5,000) Operating Wages Payable $6,000 $15,000 $(9,000) Operating Income Taxes Payable $3,400 $3,800 $(400) Operating Total Current Liabilities $34,400 $48,800 $(14,400) Note Payable $30,000 $60,000 $(30,000) Financing Total Liabilities $64,400 $108,800 $(44,400) Equity Common Stock, $5 Par $220,000 $160,000 $60,000 Financing Retained Earnings $33,300 $24,100 $9,200 Net Income…. Total Equity $253,300 $184,100 $69,200 $317,700 $292,900 $24,800 Additionally Disclosed Information a. A $30,000 note payable is retired at its 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.
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Exdercise 16 10 Examples for class - Running Cash Flow...

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