Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 2020 Assets Cash $ 93,700 $ 67,000

The following financial statements and additional information are reported.

IKIBAN INCORPORATED
Comparative Balance Sheets
At June 30 2021 2020
Assets
Cash $ 93,700 $ 67,000
Accounts receivable, net 99,500 74,000
Inventory 86,800 121,000
Prepaid expenses 6,700 10,000
Total current assets 286,700 272,000
Equipment 147,000 138,000
Accumulated depreciationEquipment (38,500) (20,500)
Total assets $ 395,200 $ 389,500
Liabilities and Equity
Accounts payable $ 48,000 $ 64,500
Wages payable 8,300 19,600
Income taxes payable 5,700 8,400
Total current liabilities 62,000 92,500
Notes payable (long term) 53,000 83,000
Total liabilities 115,000 175,500
Equity
Common stock, $5 par value 266,000 183,000
Retained earnings 14,200 31,000
Total liabilities and equity $ 395,200 $ 389,500

IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2021
Sales $ 793,000
Cost of goods sold 434,000
Gross profit 359,000
Operating expenses (excluding depreciation) 90,000
Depreciation expense 81,600
187,400
Other gains (losses)
Gain on sale of equipment 4,300
Income before taxes 191,700
Income taxes expense 46,190
Net income $ 145,510

Additional Information

  1. A $30,000 notes payable is retired at its $30,000 carrying (book) value in exchange for cash.
  2. The only changes affecting retained earnings are net income and cash dividends paid.
  3. New equipment is acquired for $80,600 cash.
  4. Received cash for the sale of equipment that had cost $71,600, yielding a $4,300 gain.
  5. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement.
  6. All purchases and sales of inventory are on credit.

image text in transcribedimage text in transcribed

thanks for the help, Can you please show me the work?

Required: (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021. (Amounts to be deducted should be Indicated with a minus sign.) IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2021 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities $ 0 Cash flows from investing activities 0 Cash flows from financing activities 0 $ 0 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 0 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2021. Choose Numerator: 1 Cash Flow on Total Assets Ratio Choose Denominator: Cash Flow on Total Assets Ratio Cash flow on total assets ratio 1 1

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

Crossover Of Audit And Evaluation Practices Comparative Policy Evaluation

Authors: Maria Barrados, Jeremy Lonsdale

1st Edition

1032173874, 978-1032173870

More Books

Students also viewed these Accounting questions

Question

What are common use items in MRP?

Answered: 1 week ago