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[The following information applies to the questions displayed below.] The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30,
[The following information applies to the questions displayed below.]
The following financial statements and additional information are reported. |
IKIBAN INC. Comparative Balance Sheets June 30, 2015 and 2014 | ||||||||
2015 | 2014 | |||||||
Assets | ||||||||
Cash | $ | 110,400 | $ | 67,800 | ||||
Accounts receivable, net | 69,700 | 51,200 | ||||||
Inventory | 66,400 | 96,400 | ||||||
Prepaid expenses | 5,000 | 6,100 | ||||||
Total current assets | 251,500 | 221,500 | ||||||
Equipment | 134,500 | 119,000 | ||||||
Accum. depreciationEquipment | (28,900 | ) | (10,600 | ) | ||||
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Total assets | $ | 357,100 | $ | 329,900 | ||||
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Liabilities and Equity | ||||||||
Accounts payable | $ | 26,800 | $ | 32,900 | ||||
Wages payable | 7,600 | 16,900 | ||||||
Income taxes payable | 2,600 | 4,000 | ||||||
Total current liabilities | 37,000 | 53,800 | ||||||
Notes payable (long term) | 59,000 | 79,000 | ||||||
Total liabilities | 96,000 | 132,800 | ||||||
Equity | ||||||||
Common stock, $5 par value | 236,000 | 189,000 | ||||||
Retained earnings | 25,100 | 8,100 | ||||||
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Total liabilities and equity | $ | 357,100 | $ | 329,900 | ||||
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IKIBAN INC. Income Statement For Year Ended June 30, 2015 | ||||||
Sales | $ | 671,000 | ||||
Cost of goods sold | 408,000 | |||||
Gross profit | 263,000 | |||||
Operating expenses | ||||||
Depreciation expense | $ | 52,100 | ||||
Other expenses | 66,400 | |||||
Total operating expenses | 118,500 | |||||
144,500 | ||||||
Other gains (losses) | ||||||
Gain on sale of equipment | 2,700 | |||||
Income before taxes | 147,200 | |||||
Income taxes expense | 58,880 | |||||
Net income | $ | 88,320 | ||||
Additional Information |
a. | A $20,000 note payable is retired at its $20,000 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 $63,800 cash. |
d. | Received cash for the sale of equipment that had cost $48,300, yielding a $2,700 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. |
Required: | |
(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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