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Required information Exercise 16-12 (Algo) Indirect: Preparing statement of cash flows LO P2, P3, A1 [The following information applies to the questions displayed below.] The
Required information
Exercise 16-12 (Algo) Indirect: Preparing statement of cash flows LO P2, P3, A1
[The following information applies to the questions displayed below.] The following financial statements and additional information are reported.
IKIBAN INCORPORATED | ||
Comparative Balance Sheets | ||
At June 30 | 2021 | 2020 |
---|---|---|
Assets | ||
Cash | $ 102,700 | $ 52,000 |
Accounts receivable, net | 77,000 | 59,000 |
Inventory | 71,800 | 98,500 |
Prepaid expenses | 5,200 | 7,000 |
Total current assets | 256,700 | 216,500 |
Equipment | 132,000 | 123,000 |
Accumulated depreciationEquipment | (31,000) | (13,000) |
Total assets | $ 357,700 | $ 326,500 |
Liabilities and Equity | ||
Accounts payable | $ 33,000 | $ 42,000 |
Wages payable | 6,800 | 16,600 |
Income taxes payable | 4,200 | 5,400 |
Total current liabilities | 44,000 | 64,000 |
Notes payable (long term) | 38,000 | 68,000 |
Total liabilities | 82,000 | 132,000 |
Equity | ||
Common stock, $5 par value | 236,000 | 168,000 |
Retained earnings | 39,700 | 26,500 |
Total liabilities and equity | $ 357,700 | $ 326,500 |
IKIBAN INCORPORATED | |
Income Statement | |
For Year Ended June 30, 2021 | |
Sales | $ 718,000 |
---|---|
Cost of goods sold | 419,000 |
Gross profit | 299,000 |
Operating expenses (excluding depreciation) | 75,000 |
Depreciation expense | 66,600 |
157,400 | |
Other gains (losses) | |
Gain on sale of equipment | 2,800 |
Income before taxes | 160,200 |
Income taxes expense | 44,690 |
Net income | $ 115,510 |
Additional Information
- A $30,000 notes payable is retired at its $30,000 carrying (book) value in exchange for cash.
- The only changes affecting retained earnings are net income and cash dividends paid.
- New equipment is acquired for $65,600 cash.
- Received cash for the sale of equipment that had cost $56,600, yielding a $2,800 gain.
- Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement.
- All purchases and sales of inventory are on credit.
Exercise 16-12 (Algo) Part 2
(2) Compute the companys cash flow on total assets ratio for its fiscal year 2021.
Choose Numerator: = Cash Flow on Total Assets Ratio 1 Choose Denominator: Cash Flow on Total Assets Ratio Cash flow on total assets ratio 0
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