IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 $ 99, 100 86,000 77,800 5,800 268,700 138,000 (34,000 $372,700 $ 58,000 65,000 107,500 8,200 238,700 129,000 (16,000) $351,700 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. 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 $ 39,000 7,400 4,800 51,200 44,000 95, 200 $ 51,000 17,800 6,600 75,400 74,000 149,400 248,000 29,500 $372,700 174,000 28,300 $351,700 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $72,600 Other expenses 81,000 Total operating expenses $ 748,000 425,000 323,000 153,600 169,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,480 172,800 45,290 $127,510 ho 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 $71.600 cash: d. Received cash for the sale of equipment that had cost $62,600. yielding a $3.400 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 Exercise 12-11 Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2019. Choose Numerator: Cash Flow on Total Assets Ratio Choose Denominator: Cash Flow on Total Assets Ratio Accounts receivable, Cash flow on total assets ratio + net 0 Financing cash flows 1 1 IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities Net income $ 127,510 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Gain on sale of plant assets (3,400) Depreciation expense 72,600 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 (21,000) 29,700 2,400 (12,000) (10,400) (1,800) Net cash provided by operating activities CA 183,610