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The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2015 and 2014 2015 2014 Assets Cash $ 99,200
The following financial statements and additional information are reported. |
IKIBAN INC. Comparative Balance Sheets June 30, 2015 and 2014 | ||||||||
2015 | 2014 | |||||||
Assets | ||||||||
Cash | $ | 99,200 | $ | 62,100 | ||||
Accounts receivable, net | 69,400 | 51,800 | ||||||
Inventory | 66,500 | 96,700 | ||||||
Prepaid expenses | 4,400 | 6,100 | ||||||
Total current assets | 239,500 | 216,700 | ||||||
Equipment | 131,400 | 115,000 | ||||||
Accum. depreciationEquipment | (28,600 | ) | (10,400 | ) | ||||
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Total assets | $ | 342,300 | $ | 321,300 | ||||
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Liabilities and Equity | ||||||||
Accounts payable | $ | 26,500 | $ | 32,900 | ||||
Wages payable | 7,600 | 16,300 | ||||||
Income taxes payable | 2,900 | 4,200 | ||||||
Total current liabilities | 37,000 | 53,400 | ||||||
Notes payable (long term) | 47,000 | 74,000 | ||||||
Total liabilities | 84,000 | 127,400 | ||||||
Equity | ||||||||
Common stock, $5 par value | 233,000 | 186,000 | ||||||
Retained earnings | 25,300 | 7,900 | ||||||
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Total liabilities and equity | $ | 342,300 | $ | 321,300 | ||||
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IKIBAN INC. Income Statement For Year Ended June 30, 2015 | ||||||
Sales | $ | 675,000 | ||||
Cost of goods sold | 411,000 | |||||
Gross profit | 264,000 | |||||
Operating expenses | ||||||
Depreciation expense | $ | 52,000 | ||||
Other expenses | 66,500 | |||||
Total operating expenses | 118,500 | |||||
145,500 | ||||||
Other gains (losses) | ||||||
Gain on sale of equipment | 2,400 | |||||
Income before taxes | 147,900 | |||||
Income taxes expense | 59,160 | |||||
Net income | $ | 88,740 | ||||
Additional Information |
a. | A $27,000 note payable is retired at its $27,000 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 $65,200 cash. |
d. | Received cash for the sale of equipment that had cost $48,800, yielding a $2,400 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. |
(1)
Prepare a statement of cash flows for the year ended June 30, 2015, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
(2) | Compute the company's cash flow on total assets ratio for its fiscal year 2015.
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