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 $ 87,500 $ 44,000 Accounts receivable, net 65,000 51,000 Inventory 63,800 86,500 Prepaid expenses 4,400 5,400 Total current assets 220, 700 186,900 Equipment 124,000 115,000 Accum. depreciation-Equipment (27,000) (9,000) Total assets $317,700 $292,900 Liabilities and Equity Accounts payable $ 25,eee $ 30,000 Wages payable 6,000 15, eee Income taxes payable 3,400 3,800 Total current liabilities 34,400 48,800 Notes payable (long term) 30, eee 60.eee Total liabilities 64,400 108,800 Equity Common stock, $5 par value 220,000 16e, eee Retained earnings 33,300 24,100 Total liabilities and equity $317,700 $292,900 BE f2 IKIBAN INC Income Statement For Year Ended June 30, 2018 Sales $678, eee Cost of goods sold 411,000 Gross profit 267,200 Operating expenses Depreciation expense $58,600 Other expenses 67,000 Total operating expenses 125,600 141,400 Other gains (losses) Gain on sale of equipment 2,000 Income before taxes 143,400 Income taxes expense 43,890 Net income $ 99,510 ces Additional Information o. 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 $57,600 cash. d. Received cash for the sale of equipment that had cost $18,600, yielding a $2,000 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 BE 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.) 012 IKIBAN, INC Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2018 Cash flows from operating activities ok Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash nces Changes in current operating assets and liabilities Cash flows from investing activities Required information Changes in current operating assets and liabilities Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end Prev 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 $57,600 cash. d. Received cash for the sale of equipment that had cost $48,600. yielding a $2,000 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
