of 8 Required information [The following information applies to the questions displayed below) The following financial statements and additional information are reported. IKIBAN INC Comparative Balance Sheets June 30, 2018 and 2017 2018 2017 Assets Cash $ 86,900 $ 45,000 Accounts receivable, net 66,50 52,000 Inventory 64,800 88, eee Prepaid expenses 4,500 5,600 Total current assets 222,700 190,6ee Equipment 125,000 116,000 Accum. depreciation-Equipment (27,500) (9,500) Total assets $320,200 $297,100 Liabilities and Equity Accounts payable $ 26,000 $ 31,500 Wages payable 6,100 15, 20e Income taxes payable 3,500 4,000 Total current liabilities 35,600 50,700 Notes payable (long term) 31,000 61,000 Total liabilities 66,600 111,700 Equity Common stock, $5 par value 222,000 161,000 Retained earnings 31,600 24,400 Total liabilities and equity $320,200 $297,100 IKIBAN INC. Income Statement For Year Ended June 30, 2018 Sales $683,000 Cost of goods sold 412,000 Gross profit 271,000 Operating expenses Depreciation expense $59,600 Other expenses 68,eee Total operating expenses 127,600 143,400 Other gains (losses) Gain on sale of equipment 2,100 Income before taxes 145,500 Income taxes expense 43,990 Net income $101,510 Additional Information 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 pald. c. New equipment is acquired for $58,600 cash. d. Received cash for the sale of equipment that had cost $49,600 yielding a $2,100 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 for the year ended June 30, 2018, using the indirect method (Amounts to be deducted should be indicated with a minus sign.) of 2 IKIBAN, INC Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2018 Cash flows from operating activities Book Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash erences Changes in current operating assets and liabilities Cash flows from investing activities Required information Changes in current operating assets and liabilities Part 1 of 2 3 points eBook Hint Cash flows from investing activities References Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end HUULUIGI BUFHCLUI 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 $58,600 cash. d. Received cash for the sale of equipment that had cost $49.600, yielding a $2,100 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 2018. Choose Numerator: Cash Flow on Total Assets Ratio Choose Denominator: Cash Flow on Total Assets Ratio Cash flow on total assets ratio 1
