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. New equipment is acquired for $58,600 cash. d. Received cash for the sale of equipment that had cost $49.600. yielding a $2,100 gain. e Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. All purchases and sales of inventory are on credit rev: 12_05_2017_QC_CS-111198 IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 0 IKIBAN INC Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 $ 106,900 66.500 64.800 4.500 242.700 125.000 (27.500) $340,200 $ 45,000 52.000 88,000 5,600 190,600 116.000 19.500) $ 297100 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable long term) Total liabilities Equity Common stock. $5 par value Retained earnings Total liabilities and equity $26.000 6.100 3.500 35.600 31000 66 600 $31.500 15.200 4,000 50,700 61,000 11.700 222.000 51600 $340,200 161.000 24.400 $ 297100 IKIBAN INC Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $59.600 Other expenses 68.000 Total operating expenses $683.000 412.000 271,000 127,600 143,400 2.100 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net Income 145.500 43.990 101,510 $ 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. New equipment is acquired for $58,600 cash d. Received cash for the sale of equipment that had cost $49,600. yielding a $2,100 gain e Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement (2) Compute the company's cash flow on total assets ratio for its fiscal year 2017. Choose Numerator: Cash Flow on Total Assets Ratio Choose Denominator: Cash Flow on Total Assets Ratio - Cash flow on total assets ratio
