The following financial statements and additional informationare reported. IKIBAN INC. Comparative Balance Sheets June 30, 2015and 2014 2015 2014 Assets Cash $ 98,400 $ 55,200 Accountsreceivable, net 69,300 51,800 Inventory 66,400 95,900 Prepaidexpenses 4,600 6,300 Total current assets 238,700 209,200 Equipment130,900 119,000 Accum. depreciationâEquipment (29,000 ) (10,600 )Total assets $ 340,600 $ 317,600 Liabilities and Equity Accountspayable $ 26,900 $ 32,700 Wages payable 7,600 16,400 Income taxespayable 2,600 3,800 Total current liabilities 37,100 52,900 Notespayable (long term) 47,000 72,000 Total liabilities 84,100 124,900Equity Common stock, $5 par value 231,000 185,000 Retained earnings25,500 7,700 Total liabilities and equity $ 340,600 $ 317,600IKIBAN INC. Income Statement For Year Ended June 30, 2015 Sales $672,000 Cost of goods sold 407,000 Gross profit 265,000 Operatingexpenses Depreciation expense $ 57,800 Other expenses 66,900 Totaloperating expenses 124,700 140,300 Other gains (losses) Gain onsale of equipment 2,200 Income before taxes 142,500 Income taxesexpense 57,000 Net income $ 85,500 Additional Information a. A$25,000 note payable is retired at its $25,000 carrying (book)value in exchange for cash. b. The only changes affecting retainedearnings are net income and cash dividends paid. c. New equipmentis acquired for $61,000 cash. d. Received cash for the sale ofequipment that had cost $49,100, yielding a $2,200 gain. e. PrepaidExpenses and Wages Payable relate to Other Expenses on the incomestatement. f. All purchases and sales of inventory are on credit.5.value: 10.00 pointsRequired information Required: (1) Prepare astatement of cash flows for the year ended June 30, 2015, using theindirect method. Compute the company's cash flow on total assetsratio for its fiscal year 2015.
The following financial statements and additional informationare reported. IKIBAN INC. Comparative Balance Sheets June 30, 2015and 2014 2015 2014 Assets Cash $ 98,400 $ 55,200 Accountsreceivable, net 69,300 51,800 Inventory 66,400 95,900 Prepaidexpenses 4,600 6,300 Total current assets 238,700 209,200 Equipment130,900 119,000 Accum. depreciationâEquipment (29,000 ) (10,600 )Total assets $ 340,600 $ 317,600 Liabilities and Equity Accountspayable $ 26,900 $ 32,700 Wages payable 7,600 16,400 Income taxespayable 2,600 3,800 Total current liabilities 37,100 52,900 Notespayable (long term) 47,000 72,000 Total liabilities 84,100 124,900Equity Common stock, $5 par value 231,000 185,000 Retained earnings25,500 7,700 Total liabilities and equity $ 340,600 $ 317,600IKIBAN INC. Income Statement For Year Ended June 30, 2015 Sales $672,000 Cost of goods sold 407,000 Gross profit 265,000 Operatingexpenses Depreciation expense $ 57,800 Other expenses 66,900 Totaloperating expenses 124,700 140,300 Other gains (losses) Gain onsale of equipment 2,200 Income before taxes 142,500 Income taxesexpense 57,000 Net income $ 85,500 Additional Information a. A$25,000 note payable is retired at its $25,000 carrying (book)value in exchange for cash. b. The only changes affecting retainedearnings are net income and cash dividends paid. c. New equipmentis acquired for $61,000 cash. d. Received cash for the sale ofequipment that had cost $49,100, yielding a $2,200 gain. e. PrepaidExpenses and Wages Payable relate to Other Expenses on the incomestatement. f. All purchases and sales of inventory are on credit.5.value: 10.00 pointsRequired information Required: (1) Prepare astatement of cash flows for the year ended June 30, 2015, using theindirect method. Compute the company's cash flow on total assetsratio for its fiscal year 2015.
