Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

c. New equipment is acquired for $78,600 cash. d. Received cash for the sale of equipment that had cost $69,600, yielding a $4,100 gain. e.

image text in transcribed
image text in transcribed
image text in transcribed
c. New equipment is acquired for $78,600 cash. d. Received cash for the sale of equipment that had cost $69,600, yielding a $4,100 gain. e. Prepaid Expenses and Wages Payable relate to Operati 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. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 Assets Cash $94,900$65,000 Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets \begin{tabular}{rr} 96,500 & 72,000 \\ 84,800 & 118,000 \\ 6,500 & 9,600 \\ \hline 282,700 & 264,600 \\ 145,000 & 136,000 \\ (37,500) & (19,500) \\ \hline$390,200 & $381,100 \\ \hline \end{tabular} Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities \begin{tabular}{rr} $46,000 & $61,500 \\ 8,100 & 19,200 \\ 5,500 & 8,000 \\ \hline 59,600 & 88,700 \\ 51,000 & 81,000 \\ \hline 110,600 & 169,700 \end{tabular} Equity Common stock, $5 par value Retained earnings Total liabilities and equity \begin{tabular}{rr} 262,000 & 181,000 \\ 17,600 & 30,400 \\ \hline$390,200 & $381,100 \\ \hline \hline \end{tabular} IKIBAN INCORPORATED 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 $78,600 cash. d. Received cash for the sale of equipment that had cost $69,600, yielding a $4,100 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

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

Surviving The OSHA Audit Common Sense Solutions To Your Most Feared OSHA Compliance Issues

Authors: David A. Casavant

1st Edition

0998743704, 978-0998743707

More Books

Students also viewed these Accounting questions