Choose the correct answer for the below:
Recording depreciation on manufacturing equipment will?
A. decrease in total assets, total equity, and net income.
B. no affect total assets or net income.
C. Decrease total assets, decrease net income, and increase total equity
D. not affect total assets and increase net income
Choose the correct answer for the below:
Recording depreciation on manufacturing equipment will?
A. decrease in total assets, total equity, and net income.
B. no affect total assets or net income.
C. Decrease total assets, decrease net income, and increase total equity
D. not affect total assets and increase net income
Related questions
| IKIBAN INC. | ||||||||
| 2015 | 2014 | |||||||
| Assets | ||||||||
| Cash | $ | 96,500 | $ | 56,200 | ||||
| Accounts receivable, net | 69,300 | 51,400 | ||||||
| Inventory | 66,600 | 96,800 | ||||||
| Prepaid expenses | 5,100 | 6,400 | ||||||
| Total current assets | 237,500 | 210,800 | ||||||
| Equipment | 135,200 | 120,000 | ||||||
| Accum. depreciationâEquipment | (28,900 | ) | (10,500 | ) | ||||
| Total assets | $ | 343,800 | $ | 320,300 | ||||
| Liabilities and Equity | ||||||||
| Accounts payable | $ | 26,900 | $ | 32,200 | ||||
| Wages payable | 7,100 | 16,700 | ||||||
| Income taxes payable | 2,500 | 4,100 | ||||||
| Total current liabilities | 36,500 | 53,000 | ||||||
| Notes payable (long term) | 42,000 | 70,000 | ||||||
| Total liabilities | 78,500 | 123,000 | ||||||
| Equity | ||||||||
| Common stock, $5 par value | 240,000 | 189,000 | ||||||
| Retained earnings | 25,300 | 8,300 | ||||||
| Total liabilities and equity | $ | 343,800 | $ | 320,300 | ||||
| IKIBAN INC. | ||||||
| Sales | $ | 673,000 | ||||
| Cost of goods sold | 407,000 | |||||
| Gross profit | 266,000 | |||||
| Operating expenses | ||||||
| Depreciation expense | $ | 53,000 | ||||
| Other expenses | 66,900 | |||||
| Total operating expenses | 119,900 | |||||
|
| 146,100 | |||||
| Other gains (losses) | ||||||
| Gain on sale of equipment | 2,600 | |||||
| Income before taxes | 148,700 | |||||
| Income taxes expense | 59,480 | |||||
| Net income | $ | 89,220 | ||||
a. A $28,000 note payable is retired at its $28,000 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 $48,600, yielding a $2,600 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.
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(2) Compute the company's cash flow on total assets ratio for its fiscal year 2015.
