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 $ 77,300 $ 61,080 Accounts receivable, net 90,500 68,eee Inventory 80,800 112,000 Prepaid expenses 6,100 8,800 Total current assets 254,700 249,800 Equipment 141, eee 132,000 Accum. depreciation-Equipment (35,500) (17,500) Total assets $360,200 $364,300 Liabilities and Equity Accounts payable $ 42,00 55,500 Wages payable 7,700 18,400 Income taxes payable 5, 100 7,200 Total current liabilities 54,800 81,100 Notes payable (long term) 47, eee 77,280 Total liabilities 101,800 158, 100 Equity Common stock, $5 par value 254,000 177,000 Retained earnings 4,400 29, 200 Total liabilities and equity $360,200 $364,300 ch 09.11 & 12) Saved IKIBAN INC. Income Statement For Year Ended June 30, 2018 Sales $763,000 Cost of goods sold 428,eee Gross profit 335,000 Operating expenses Depreciation expense $75,600 Other expenses 84,000 Total operating expenses 159, 600 175,400 Other gains (losses) Gain on sale of equipment 3,700 Income before taxes 179, 100 Income taxes expense 45,590 Net income $133,510 Additional Information 0. 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 $74,600 cash. d. Received cash for the sale of equipment that had cost $65,600, yielding a $3,700 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 information IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2018 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 vo 159,600 175,400 Operating expenses Depreciation expense $75,600 Other expenses 84, eee Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income of 2 3,7ee 179, 180 45,590 $133,510 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 $74,600 cash. d. Received cash for the sale of equipment that had cost $65,600, yielding a $3.700 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
