Answered step by step
Verified Expert Solution
Question
1 Approved Answer
IKIBAN INC Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum.
IKIBAN INC Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets $100,90e$55,000 62,000 103,000 7,600 227, 600 126,000 81,500 74,800 5,500 262,700 135,000 (32, 5e0) (14,500) $365,20e $339,100 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 $ 36,00046,500 17,200 7,100 4,500 47,600 41,000 88,600 69,700 71,000 140,700 171,000 27,400 $365,20e $339,100 242,000 34,600 For Year Ended June 36, 261/ Sales Cost of goods sold Gross profit Operating expenses $733,00 422,000 311,000 Depreciation expense $69,600 78,000 Other expenses Total operating expenses 147,600 163,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,100 166, 500 44,990 $121,516e 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 $68,600 cash. d. Received cash for the sale of equipment that had cost $59,600, yielding a $3,100 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 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2017. Cash Flow on Total Assets Ratio Choose Denominator: Average total assets Choose Numerator: Cash Flow on Total Assets Ratio Operating cash flows / Cash flow on total assets ratio
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started