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The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2013 and 2012 2013 2012 Assets Cash $ 92,700
The following financial statements and additional information are reported. |
IKIBAN INC. Comparative Balance Sheets June 30, 2013 and 2012 | ||||||||
2013 | 2012 | |||||||
Assets | ||||||||
Cash | $ | 92,700 | $ | 52,300 | ||||
Accounts receivable, net | 69,600 | 51,600 | ||||||
Inventory | 65,900 | 96,600 | ||||||
Prepaid expenses | 5,500 | 4,400 | ||||||
Equipment | 127,800 | 118,000 | ||||||
Accum. depreciationEquipment | (28,100 | ) | (10,900 | ) | ||||
Total assets | $ | 333,400 | $ | 312,000 | ||||
Liabilities and Equity | ||||||||
Accounts payable | $ | 26,300 | $ | 32,100 | ||||
Wages payable | 8,000 | 16,300 | ||||||
Income taxes payable | 2,500 | 3,900 | ||||||
Notes payable (long term) | 42,000 | 72,000 | ||||||
Common stock, $5 par value | 230,000 | 180,000 | ||||||
Retained earnings | 24,600 | 7,700 | ||||||
Total liabilities and equity | $ | 333,400 | $ | 312,000 | ||||
IKIBAN INC. Income Statement For Year Ended June 30, 2013 | ||||||
Sales | $ | 677,000 | ||||
Cost of goods sold | 402,000 | |||||
Gross profit | 275,000 | |||||
Operating expenses | ||||||
Depreciation expense | $ | 58,500 | ||||
Other expenses | 66,600 | |||||
Total operating expenses | 125,100 | |||||
149,900 | ||||||
Other gains (losses) | ||||||
Gain on sale of equipment | 2,300 | |||||
Income before taxes | 152,200 | |||||
Income taxes expense | 60,880 | |||||
Net income | $ | 91,320 | ||||
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 $58,600 cash. |
d. | Received cash for the sale of equipment that had cost $48,800, yielding a $2,300 gain. |
e. | Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. |
f. | All purchases and sales of merchandise inventory are on credit. Prepare a statement of cash flows for the year ended June 30, 2013, using the indirect method.
Compute the company's cash flow on total assets ratio for its fiscal year 2013. |
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