Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following financial statements and additional information are reported IKIBAN ING Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash Accounts receivable,

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

The following financial statements and additional information are reported IKIBAN ING Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash Accounts receivable, net Lnventory Prepaid expenses Total current assets Equipment Accum. 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 $ 98,500 59,000 66,000 109,000 8,400 242,400 130,000 16.500 $375,200 355,900 87,500 78,800 5,900 270,700 139,000 (34,500) ( $ 40,000 7,500 4,900 52,400 45,000 97,400 52,500 18,000 6,800 77,300 75,000 152,300 175,000 28,600 $375,200 $355,900 250,000 27,800 IKIBAN INC Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses $753,000 426,000 327,000 $73,600 82,000 Depreciation expense Other expenses Total operating expenses 155,600 171,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,500 174,900 45,390 $129,510 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 $72,600 cash. d. Received cash for the sale of equipment that had cost $63,600, yielding a $3,500 gair. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit. Answer is not complete. IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 Cash flows from operating activities $ 129,510 Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense Gain on sale of plant assets 73,600 (3,500) Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses 39,500 30,200 2,500 (12,500) (10,500) ecrease in accounts payable Decrease in wages payable (2) Compute the company's cash flow on total assets ratio for its fiscal year 2017. Cash Flow on Total Assets Ratio Choose Numerator: Choose Denominator: Cash Flow on Total Assets Ratio Cash flow on total assets ratio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Analysing The Value Proposition Of The Audit Process In Africa The Case Of Malawi

Authors: Daniel Dunga

1st Edition

3659166286, 978-3659166280

More Books

Students also viewed these Accounting questions

Question

3. Identify the methods used within each of the three approaches.

Answered: 1 week ago