The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets Assets At...
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The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets Assets At June 30 Cash Accounts receivable, net Prepaid expenses 2021 2020 $ 103,300 $ 51,000 75,500 58,000 Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value 70,800 97,000 5,100 6,800 254,700 212,800 131,000 (30,500) $ 355,200 $ 32,000 122,000 (12,500) $ 322,300 $ 40,500 6,700 16,400 4,100 5,200 42,800 62,100 37,000 67,000 79,800 129,100 234,000 167,000 Retained earnings 41,400 26,200 Total liabilities and equity $ 355,200 $ 322,300 IKIBAN INCORPORATED $ 355,200 $ 322,300 Total liabilities and equity IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales $ 713,000 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes. Income taxes expense Net income Additional Information 418,000 295,000 74,000 65,600 155,400 2,700 158,100 44,590 $113,510 a. A $30,000 notes 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 $64,600 cash. d. Received cash for the sale of equipment that had cost $55,600, yielding a $2,700 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit. Additional Information a. A $30,000 notes 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 $64,600 cash. d. Received cash for the sale of equipment that had cost $55,600, yielding a $2,700 gain. e. Prepaid Expenses and Wages Payable relate to Operating 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 2021. The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets Assets At June 30 Cash Accounts receivable, net Prepaid expenses 2021 2020 $ 103,300 $ 51,000 75,500 58,000 Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value 70,800 97,000 5,100 6,800 254,700 212,800 131,000 (30,500) $ 355,200 $ 32,000 122,000 (12,500) $ 322,300 $ 40,500 6,700 16,400 4,100 5,200 42,800 62,100 37,000 67,000 79,800 129,100 234,000 167,000 Retained earnings 41,400 26,200 Total liabilities and equity $ 355,200 $ 322,300 IKIBAN INCORPORATED $ 355,200 $ 322,300 Total liabilities and equity IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales $ 713,000 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes. Income taxes expense Net income Additional Information 418,000 295,000 74,000 65,600 155,400 2,700 158,100 44,590 $113,510 a. A $30,000 notes 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 $64,600 cash. d. Received cash for the sale of equipment that had cost $55,600, yielding a $2,700 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit. Additional Information a. A $30,000 notes 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 $64,600 cash. d. Received cash for the sale of equipment that had cost $55,600, yielding a $2,700 gain. e. Prepaid Expenses and Wages Payable relate to Operating 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 2021.
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