with show work please
The following financial statements and additional information are reported. KBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2016 2017 Assets Cash $82,100 78,500 72,800 5,300 238,700 133,000 (31,500) $340, 200 $53,000 60,000 100,000 7,200 220, 200 124,000 (13,500) $330,700 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 $43,500 16,800 5,600 65,900 69,000 134,900 34,000 6,900 4,300 45,200 39,000 84, 200 Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings 238,000 18,000 $340, 200 169,000 26,800 $330,700 Total liabilities and equity IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales $723,000 420,000 303,000 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses $67,600 76,000 Total operating expenses 143,600 159,400 Other gains (losses) Gain on sale of equipment 2,900 162,300 44,790 Income before taxes Income taxes expense $117,510 Net income 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 $66,600 cash d. Received cash for the sale of equipment that had cost $57,600, yielding a $2,900 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, 2017, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2017 Cash flows from operating activities Net income 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 Net increase (decrease) in cash 0 Cash balance at prior year-end Cash balance at current year-end EA EA 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 $66,600 cash. d. Received cash for the sale of equipment that had cost $57,600, yielding a $2,900 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 2017 Cash Flow on Total Assets Ratio Choose Denominator: Choose Numerator: Cash Flow on Total Assets Ratio Cash flow on total assets ratio / = =
