Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At June 30 Assets IKIBAN INCORPORATED Comparative Balance Sheets 2021 Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total

image text in transcribedimage text in transcribed

At June 30 Assets IKIBAN INCORPORATED Comparative Balance Sheets 2021 Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated 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 Sales Cost of goods sold $ 101,500 80,000 73,800 2020 $ 54,000 61,000 101,500 5,400 7,400 260,700 223,900 134,000 (32,000) $ 362,700 $ 35,000 7,000 4,400 46,400 125,000 (14,000) $ 334,900 $ 45,000 17,000 5,800 67,800 40,000 70,000 86,400 137,800 240,000 36,300 170,000 27,100 $ 362,700 $ 334,900 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $ 728,000 421,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 307,000 77,000 68,600 161,400 3,000 164,400 44,890 $ 119,510 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 $67,600 cash. d. Received cash for the sale of equipment that had cost $58,600, yielding a $3,000 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. (2) Compute the company's cash flow on total assets ratio for its fiscal year 2021. Choose Numerator: Cash Flow on Total Assets Ratio Choose Denominator: = Cash Flow on Total Assets Ratio = Cash flow on total assets ratio = 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ronald W Hilton

7th Edition

0073022853, 978-0073022857

More Books

Students also viewed these Accounting questions

Question

Find the value of the sum. 2-5) i=1

Answered: 1 week ago