2018 IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 96,100 Accounts receivable, net 93,500 Inventory 82,800 Prepaid expenses 6,300 Total current assets 278, 700 Equipment 143,000 Accum. depreciation Equipment (36,500) Total assets $385,200 Liabilities and Equity Accounts payable $ 44,000 Wages payable 7,900 Income taxes payable 5,300 Total current liabilities 57,200 Notes payable (long term) 49,000 Total liabilities 106,200 Equity Common stock, $5 par value 258,000 Retained earnings 21,000 Total liabilities and equity $385,200 $ 63,000 70,000 115,000 9,200 257, 200 134,000 (18,500) $372,700 $ 58,500 18,800 7,600 84,900 79,000 163,900 179,000 29,800 $372,700 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $77,600 Other expenses 86,000 Total operating expenses $ 773,000 430,000 343,000 163,600 179,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,900 183,300 45,790 $137,510 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 $76,600 cash. d. Received cash for the sale of equipment that had cost $67,600, yielding a $3,900 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. Exercise 12-11 Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2019. Choose Numerator: I Cash Flow on Total Assets Ratio Choose Denominator: = Cash Flow on Total Assets Ratio Cash flow on total assets ratio 2018 IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 96,100 Accounts receivable, net 93,500 Inventory 82,800 Prepaid expenses 6,300 Total current assets 278, 700 Equipment 143,000 Accum. depreciation Equipment (36,500) Total assets $385,200 Liabilities and Equity Accounts payable $ 44,000 Wages payable 7,900 Income taxes payable 5,300 Total current liabilities 57,200 Notes payable (long term) 49,000 Total liabilities 106,200 Equity Common stock, $5 par value 258,000 Retained earnings 21,000 Total liabilities and equity $385,200 $ 63,000 70,000 115,000 9,200 257, 200 134,000 (18,500) $372,700 $ 58,500 18,800 7,600 84,900 79,000 163,900 179,000 29,800 $372,700 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $77,600 Other expenses 86,000 Total operating expenses $ 773,000 430,000 343,000 163,600 179,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,900 183,300 45,790 $137,510 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 $76,600 cash. d. Received cash for the sale of equipment that had cost $67,600, yielding a $3,900 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. Exercise 12-11 Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2019. Choose Numerator: I Cash Flow on Total Assets Ratio Choose Denominator: = Cash Flow on Total Assets Ratio Cash flow on total assets ratio