2020 IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 Assets Cash $ 102,100 Accounts receivable, ne 78,500 Inventory 72,800 Prepaid expenses 5,300 Total current assets 258, 700 Equipment 133,000 Accumulated depreciation-Equipment (31,500) Total assets $ 360,200 Liabilities and Equity Accounts payable $ 34,000 Wages payable 6,900 Income taxes payable 4,300 Total current liabilities 45,200 Notes payable (long term) 39,000 Total liabilities 84,200 Equity Common stock, $5 par value 238,000 Retained earnings 38,000 Total liabilities and equity $ 360,200 $ 53,000 60,000 100,000 7,200 220,200 124,000 (13,500) $ 330,700 $ 43,500 16,800 5,600 65,900 69,000 134,900 169,000 26, 800 $ 330,700 IKIDAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense $ 723,000 420,000 303,000 76,000 67,600 Problems Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 723,000 420,000 303,000 76,000 67,600 159,400 2,900 162,300 44,790 $ 117,510 Additional Information a. 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 $66,600 cash. d. Received cash for the sale of equipment that had cost $57,600, yielding a $2,900 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. Required: (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021. (Amounts be indicated with a minus sign.) S 117,510 IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2021 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Cash received from customers Increase in inventory Cash paid for operating expenses Changes in current operating assets and liabilities $ 117.510 Cash flows from investing activities Cash paid for equipment Cash received from sale of equipment Changes in current operating assets and liabilities 24 $ 117,510 Cash flows from investing activities Cash paid for equipment Cash received from sale of equipment Cash flows from financing activities Cash paid to retire notes Cash recelved from stock issuance Cash paid for dividends (30,000) 69,000 39,000 156,510 $ Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 156,510 [The following information applies to the questions displayed below.) The following financial statements and additional information are reported. 2020 IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 Assets Cash $ 102,100 Accounts receivable, net 78,500 Inventory 72,800 Prepaid expenses 5,300 Total current assets 258,700 Equipment 133,000 Accumulated depreciation-Equipment (31,500) Total assets $ 360,200 Liabilities and Equity Accounts payable $ 34,000 Wages payable 6,900 Income taxes payable 4,300 Total current liabilities 45,200 Notes payable (long term) 39,000 Total liabilities 84,200 Equity Common stock, $5 par value 238,000 Retained earnings 38,000 Total liabilities and equity $ 360,200 $ 53,000 60,000 100,000 7,200 220,200 124,000 (13,500) $ 330,700 $ 43,500 16,800 5,600 65,900 69,000 134,900 169,000 26,800 $ 330,700 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) $ 723,000 420,000 303,000 76,000 . art 2: Problems IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 723,000 420,000 303,000 76,000 67,600 159,400 2,900 162,300 44,790 $ 117,510 1:54 Additional Information a. 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 $66,600 cash. d. Received cash for the sale of equipment that had cost $57,600, yielding a $2,900 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 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2021. Choose Numerator: 1 1 Cash Flow on Total Assets Ratio Choose Denominator: Cash Flow on Total Assets Ratio Cash flow on total assets ratio 1