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How do I calculate? The following financial statements and additional information are reported IKIBAN INc Comparative Balance Sheets June 30, 2019 and 2018 2019 2018
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The following financial statements and additional information are reported IKIBAN INc Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 Assets Cash $94,900 96,500 84,800 6,500 282,700 145,000 (37,500) $65,000 72,000 118,000 Accounts receivable, net Inventory Prepaid expenses 9,600 264,600 136,000 Total current assets Equipment Accum. depreciation-Equipment (19,500) $390,200 $381,100 Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable $ 46,000 8,100 $61,500 19,200 8,000 88,700 5,500 Total current liabilities 59,600 Notes payable (long term) 51,000 110,600 81,000 169,700 Total liabilities Equity Common stock, $5 par value Retained earnings 262,000 181,000 17,600 30,400 Total liabilities and equity $390,200 $381,100 IKIBAN INC Income Statement For Year Ended June 30, 2019 Sales $783,000 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses 432,000 351,000 $79,600 88,000 Total operating expenses 167,600 183,400 Other gains (losses) Gain on sale of equipment 4,100 Income before taxes 187,500 Income taxes expense 45,990 $141,510 Net income 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 $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 Other 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, 2019. (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities $141,510 Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 79,600 Gain on sale of plant assets Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable 221,110 Cash flows from investing activities Cash received from stock issuance Cash paid to retire notes Cash paid for dividends 0 Cash flows from financing activities C Net increase (decrease) in cash Cash balance at prior year-end 221,110 Cash balance at current year-end 221,110 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2019. Answer is complete but not entirely correct. Cash Flow on Total Assets Ratio Choose Denominator: Average total assets Cash Flow on Total Assets Choose Numerator: Ratio Operating cash flows Cash flow on total assets ratio 141,510 390,200 36.3%Step by Step Solution
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