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The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 $100,300 83,000 75,800 5,600
The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 $100,300 83,000 75,800 5,600 264,700 136,000 (33,000) $367,700 $ 56,000 63,000 104,500 7,800 231,300 127,000 (15,000) $343,300 Assets Cash Accounts receivable, net Inventory 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 $ 37,000 7,200 4,600 48,800 42,000 90,800 $ 48,000 17,400 6,200 71,600 72,000 143,600 244,000 32,900 $367,700 172,000 27,700 $343, 300 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $70,600 Other expenses 79,000 Total operating expenses $738,000 423,000 315,000 149,600 165,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,200 168,600 45,090 $123,510 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 $69,600 cash. d. Received cash for the sale of equipment that had cost $60,600, yielding a $3,200 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. (2) Compute the company's cash flow on total assets ratio for its fiscal year 2019. Choose Numerator: Cash Flow on Total Assets Ratio 1 Choose Denominator: = Cash Flow on Total Assets Ratio 1 Cash flow on total assets ratio 1 0 11
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