Question
Required information [The following information applies to the questions displayed below.] The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance
Required information [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 Assets Cash Accounts receivable, net Prepaid expenses Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings 2021 2020 $ 100,300 $ 56,000 83,000 75,800 63,000 104,500 5,600 7,800 264,700 231,300 136,000 (33,000) $ 367,700 $ 37,000 7,200 127,000 (15,000) $ 343,300 $ 48,000 17,400 6,200 71,600 4,600 48,800 42,000 72,000 90,800 143,600 244,000 172,000 32,900 27,700 Total liabilities and equity $ 367,700 $ 343,300 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold $ 738,000 423,000 315,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 79,000 70,600 165,400 3,200 168,600 45,090 $ 123,510 13 t 2 of 2 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income its eBook Hint Print References 165,400 3,200 168,600 45,090 $ 123,510 Additional Information a. A $30,000 notes 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 $69,600 cash. d. Received cash for the sale of equipment that had cost $60,600, yielding a $3,200 gain. e. Prepaid Expenses and Wages Payable relate to Operating 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 2021. Choose Numerator: Operating cash flows Cash Flow on Total Assets Ratio Choose Denominator: Average total assets Cash Flow on Total Assets Ratio Cash flow on total assets ratio = 0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started