Required information Use the following information for the Exercises below. [The following information applies to the questions displayed below.] The following financial statements and additional information are reported. 2017 IKIBAN INC. Comparative Balance Sheets June 30, 2018 and 2017 2018 Assets Cash $ 86,300 Accounts receivable, net 68,000 Inventory 65,800 Prepaid expenses 4,600 Total current assets 224,700 Equipment 126,000 Accum. depreciation-Equipment (28,000) Total assets $322,700 Liabilities and Equity Accounts payable $ 27,000 Wages payable 6,200 Income taxes payable 3,600 Total current liabilities 36,800 Notes payable (long term) 32,000 Total liabilities 68,800 Equity Common stock, $5 par value 224,000 Retained earnings 29,900 Total liabilities and equity $322,700 $ 46,000 53,000 89,500 5,800 194, 300 117,000 (10,000) $301,300 $ 33,000 15,400 4,200 52,600 62,000 114,600 162,000 24,700 $301,300 24 / Retained earnings Total liabilities and equity 29,900 $322,700 $301,300 IKIBAN INC. Income Statement For Year Ended June 30, 2018 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $60,600 Other expenses 69,000 Total operating expenses $688,000 413,000 275,000 129,600 145,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,200 147,600 44,090 $103,510 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 $59,600 cash. d. Received cash for the sale of equipment that had cost $50,600, yielding a $2,200 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. Exercise 12-11 Indirect: Preparing statement of cash flows (Part 2) LO P1, P2, P3, A1 IL VEIC LOAD Income taxes expense Net income 44,090 $103,510 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 $59,600 cash. d. Received cash for the sale of equipment that had cost $50,600, yielding a $2,200 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. Exercise 12-11 Indirect: Preparing statement of cash flows (Part 2) LO P1, P2, P3, A1 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2018. Answer is not complete. Choose Numerator: Operating cash flows 45,100 X Cash Flow on Total Assets Ratio Choose Cash Flow on Total Assets Denominator: Ratio Average total assets = Cash flow on total assets ratio
