Sales IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information $ 693,000 414,000 279,000 70,000 61,600 147,400 2,300 149,700 44,190 $ 105,510 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 $60,600 cash. d. Received cash for the sale of equipment that had cost $51,600, yielding a $2,300 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. Exercise 12-12 (Algo) Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2021. Choose Numerator: Operating cash flows. $ 149,700 / Cash Flow on Total Assets Ratio Choose Denominator: Average total assets Cash Flow on Total Assets Ratio Cash flow on total assets ratio < Prev 82 of 10 15 1 GL1201 (Algo) - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional information. ONPOINT INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018 points Mc Assets Cash Accounts receivable, not 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 Total liabilities and equity 2019 2018 $127,700 $ 74,600 70,000 55,000 65,000 90,000 4,500 5,600 267,200 225,200 131,000 (33,000) $ 365,200 $ 28,000 7,000 3,800 121,000 (11,000) $ 335,200 $ 34,000 17,000 4,200 38,800 55,200 35,000 70,000 73,800 125,200 250,000 180,000 41,400 $365,200 30,000 $ 335,200 ONPOINT INCORPORATED Income Statement For Year Ended June 30, 2019 $ 699,000 427,000 272,000 Salos Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 61,000 69,000 $130,000 142,000 2,200 144,200 44,140 $ 100,060