IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash $ 87,500 $ 44,000 Accounts receivable, net 65,000 51,000 Inventory 63,800 86,500 Prepaid expenses 4,400 5,400 Total current assets 220,700 186,900 Equipment 124,000 115,000 Accum. depreciation, (27,000) (9,000) Equipment Total assets $317,700 $292,900 Liabilities and Equity Accounts payable $ 25,000 $ 30,000 Wages payable 6,000 15,000 Income taxes payable 3,400 3,800 Total current liabilities 34,400 48,800 Notes payable (long term) 30,000 60,000 Total liabilities 64,400 108,800 Equity Common stock, $5 par 220,000 160,000 value Retained earnings 33,300 24,100 Total liabilities and $317,700 $292,900 equity IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales $ 678,000 Cost of goods sold 411,000 Gross profit 267,000 Operating expenses Depreciation $58,600 expense Other expenses 67,000 Total operating 125,600 expenses 141,400 Other gains (losses) Gain on sale of 2,000 equipment Tncome before taxes 143.400 67,000 expense Other expenses Total operating expenses 125,600 141,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,000 143,400 43,890 $ 99,510 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. c. New equipment is acquired for $57,600 cash. d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 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. xercise 12-11 Part 1 equired: ) Prepare a statement of cash flows for the year ended June 30, 2017, using the indirect method. (Amounts to be educted should be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 Cash flows from operating activities Net income $ 99,510 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense 58,600 Gain on sale of plant assets 2,000 Increase in accounts receivable Changes in current operating assets and liabilities $ 160,110 Cash flows from investing activities Cash flows from financing activities $ 160,110 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 160,110 (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 Cash Flow on Total Denominator: Assets Ratio Cash flow on total assets ratio
