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plumoyster19Lv1
28 Sep 2019
[The following information applies to thequestions displayed below.]
The followingfinancial statements and additional information are reported.
IKIBAN INC.
Comparative Balance Sheets
June 30, 2015 and 2014 2015 2014 Assets Cash $ 111,800 $ 69,700 Accounts receivable, net 69,100 51,200 Inventory 65,900 96,200 Prepaid expenses 5,000 5,600 Total current assets 251,800 222,700 Equipment 125,800 115,000 Accum. depreciationâEquipment (28,700 ) (10,700 ) Total assets $ 348,900 $ 327,000 Liabilities and Equity Accounts payable $ 26,500 $ 32,200 Wages payable 7,900 16,900 Income taxes payable 2,800 3,600 Total current liabilities 37,200 52,700 Notes payable (long term) 50,000 77,000 Total liabilities 87,200 129,700 Equity Common stock, $5 par value 237,000 189,000 Retained earnings 24,700 8,300 Total liabilities and equity $ 348,900 $ 327,000
IKIBAN INC.
Income Statement
For Year Ended June 30, 2015 Sales $ 677,000 Costof goods sold 411,000 Gross profit 266,000 Operating expenses Depreciation expense $ 58,600 Other expenses 66,900 Total operating expenses 125,500 140,500 Other gains (losses) Gain on sale ofequipment 2,700 Income before taxes 143,200 Income taxes expense 57,280 Netincome $ 85,920
Additional Information
a. A $27,000 notepayable is retired at its $27,000 carrying (book) value in exchangefor cash. b. The only changesaffecting retained earnings are net income and cash dividendspaid. c. New equipment isacquired for $59,500 cash. d. Received cashfor the sale of equipment that had cost $48,700, yielding a $2,700gain. e. Prepaid Expensesand Wages Payable relate to Other Expenses on the incomestatement. f. All purchasesand sales of inventory are on credit.
(1) Prepare a statement of cash flows for the year ended June30, 2015, using the indirect method. (Amounts to bededucted should be indicated with a minus sign.)
IKIBAN, INC. Statement of Cash Flows(Indirect Method) For Year Ended June 30,2015 Cash flows from operatingactivities Net income $85,920 Adjustments toreconcile net income to net cash provided by operatingactivities Income statement items notaffecting cash Depreciation expense Gain on sale of plantassets Changes in current operatingassets and liabilities Decrease in inventory Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable Net cash providedby operating activities $85,920 Cash flows from investingactivities Cash received from sale ofequipment Cash paid for equipment Net cash used in investingactivities 0 Cash flows from financingactivities Cash received from stockissuance Cash paid to retire notes Cash paid for dividends Net cash used in financingactivities 0 Net increase (decrease) incash $85,920 Cash balance at prioryear-end Cash balance atcurrent year-end $85,920
(2) Compute the company's cash flow on total assets ratio forits fiscal year 2015.
Cash Flow on Total AssetsRatio ChooseNumerator: / ChooseDenominator: = Cash Flow on TotalAssets Ratio / = Cash flow on totalassets ratio / =
[The following information applies to thequestions displayed below.]
| The followingfinancial statements and additional information are reported. |
| IKIBAN INC. Comparative Balance Sheets June 30, 2015 and 2014 | ||||||||
| 2015 | 2014 | |||||||
| Assets | ||||||||
| Cash | $ | 111,800 | $ | 69,700 | ||||
| Accounts receivable, net | 69,100 | 51,200 | ||||||
| Inventory | 65,900 | 96,200 | ||||||
| Prepaid expenses | 5,000 | 5,600 | ||||||
| Total current assets | 251,800 | 222,700 | ||||||
| Equipment | 125,800 | 115,000 | ||||||
| Accum. depreciationâEquipment | (28,700 | ) | (10,700 | ) | ||||
| Total assets | $ | 348,900 | $ | 327,000 | ||||
| Liabilities and Equity | ||||||||
| Accounts payable | $ | 26,500 | $ | 32,200 | ||||
| Wages payable | 7,900 | 16,900 | ||||||
| Income taxes payable | 2,800 | 3,600 | ||||||
| Total current liabilities | 37,200 | 52,700 | ||||||
| Notes payable (long term) | 50,000 | 77,000 | ||||||
| Total liabilities | 87,200 | 129,700 | ||||||
| Equity | ||||||||
| Common stock, $5 par value | 237,000 | 189,000 | ||||||
| Retained earnings | 24,700 | 8,300 | ||||||
| Total liabilities and equity | $ | 348,900 | $ | 327,000 | ||||
| IKIBAN INC. Income Statement For Year Ended June 30, 2015 | ||||||
| Sales | $ | 677,000 | ||||
| Costof goods sold | 411,000 | |||||
| Gross profit | 266,000 | |||||
| Operating expenses | ||||||
| Depreciation expense | $ | 58,600 | ||||
| Other expenses | 66,900 | |||||
| Total operating expenses | 125,500 | |||||
| 140,500 | ||||||
| Other gains (losses) | ||||||
| Gain on sale ofequipment | 2,700 | |||||
| Income before taxes | 143,200 | |||||
| Income taxes expense | 57,280 | |||||
| Netincome | $ | 85,920 | ||||
| Additional Information |
| a. | A $27,000 notepayable is retired at its $27,000 carrying (book) value in exchangefor cash. |
| b. | The only changesaffecting retained earnings are net income and cash dividendspaid. |
| c. | New equipment isacquired for $59,500 cash. |
| d. | Received cashfor the sale of equipment that had cost $48,700, yielding a $2,700gain. |
| e. | Prepaid Expensesand Wages Payable relate to Other Expenses on the incomestatement. |
| f. | All purchasesand sales of inventory are on credit. |
(1) Prepare a statement of cash flows for the year ended June30, 2015, using the indirect method. (Amounts to bededucted should be indicated with a minus sign.)
(2) Compute the company's cash flow on total assets ratio forits fiscal year 2015.
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Patrina SchowalterLv2
28 Sep 2019