Part 1

Part 2

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, 2817 and 2016 2816 2017 As sets $73, 100 101,e0e 87,880 6,800 268,700 148.000 (39.08e) $68,000 75,eee 122,50e 10,200 275,780 139,eee (21,000) $393,700 Cash Accounts receivable, Inventory Prepaid expenses net Total current assets Equipment Accum. depreciation-Equipment Total assets $377,700 Liabilities and Equity Accounts payable Wages payable Income taxes payable $ 49,000 8,400 5,8ee 63,200 54,080 $ 66,000 19, 8ee 8,680 94,400 84,08e 178,400 Total current liabilities Notes payable (long term) Total liabilities 117,20e Equity Common stock, $5 par value Retained earnings 268,03e 7 588 184,000 31 300 $377,70e Total liabilities and equity aez EGES IKIBAN INC Income Statement For Year tnded Juna 38, 2012 $798 880 Sales cost of goods sold ross profit Operating expenses Depreciation expense Other expentes 363 000 $82 680 191 o00 IKIBAN INC. Income Statement For Year Ended June 30, 2017 $798,000 435,000 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses 363,eee $82,600 91,0ee 173,600 189,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense 4,400 193,800 46,290 $147,510 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 $81.600 cash. d. Received cash for the sale of equipment that had cost $72,600. yielding a $4.400 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. Required: ) Prepare a statement of cash flows.for the year ended June 30, 2017, using the indirect method. (Amounts t- e Indicated wlth e minus sign.) IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 Cash fows from operating activites Staleent of Cash Flos(ndinscl Mho For Year Ended June 30, 2017 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities Cash flows from investing activities Cash flows from financing activities Net increase (decresse in.cash Cash baiance at prive End Cash calance at current eaend 435,000 363,000 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses $82,600 91.000 173,600 189,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense 4,400 193,800 46, 290 $147,510 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 diMdends pald c New equipment Is acquired for $81,600 cash. d. Recelved cash for the sale of equlpment that had cost $72,600, ylelding a $4.400 galn. e Prepald 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: Cash Flow on Total Assets Ratio Choose Numerator Cash flow on total assets ratio