6,

7.

8.

A comparative balance sheet and income statement is shown for Cruz, Incorporated.

CRUZ, INCORPORATED
Comparative Balance Sheets
At December 31	2021	2020
Assets
Cash	$ 64,300	$ 16,100
Accounts receivable, net	27,600	34,100
Inventory	57,700	64,000
Prepaid expenses	3,600	2,900
Total current assets	153,200	117,100
Furniture	72,600	82,200
Accumulated depreciationFurniture	(11,200)	(6,200)
Total assets	$ 214,600	$ 193,100
Liabilities and Equity
Accounts payable	$ 10,100	$ 14,200
Wages payable	6,000	3,300
Income taxes payable	1,000	1,800
Total current liabilities	17,100	19,300
Notes payable (long-term)	20,600	47,700
Total liabilities	37,700	67,000
Equity
Common stock, $5 par value	154,700	123,700
Retained earnings	22,200	2,400
Total liabilities and equity	$ 214,600	$ 193,100

CRUZ, INCORPORATED
Income Statement
For Year Ended December 31, 2021
Sales	$ 330,500
Cost of goods sold	212,700
Gross profit	117,800
Operating expenses (excluding depreciation)	60,300
Depreciation expense	25,400
Income before taxes	32,100
Income taxes expense	11,700
Net income	$ 20,400

1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2021? 2. Assume that no additional notes payable are issued in 2021. What cash amount is paid to reduce the notes payable balance in 2021?

9.

The following financial statements and additional information are reported.

IKIBAN INCORPORATED
Comparative Balance Sheets
At June 30	2021	2020
Assets
Cash	$ 92,500	$ 69,000
Accounts receivable, net	102,500	76,000
Inventory	88,800	124,000
Prepaid expenses	6,900	10,400
Total current assets	290,700	279,400
Equipment	149,000	140,000
Accumulated depreciationEquipment	(39,500)	(21,500)
Total assets	$ 400,200	$ 397,900
Liabilities and Equity
Accounts payable	$ 50,000	$ 67,500
Wages payable	8,500	20,000
Income taxes payable	5,900	8,800
Total current liabilities	64,400	96,300
Notes payable (long term)	55,000	85,000
Total liabilities	119,400	181,300
Equity
Common stock, $5 par value	270,000	185,000
Retained earnings	10,800	31,600
Total liabilities and equity	$ 400,200	$ 397,900

IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2021
Sales	$ 803,000
Cost of goods sold	436,000
Gross profit	367,000
Operating expenses (excluding depreciation)	92,000
Depreciation expense	83,600
	191,400
Other gains (losses)
Gain on sale of equipment	4,500
Income before taxes	195,900
Income taxes expense	46,390
Net income	$ 149,510

Additional Information

1. A $30,000 notes payable is retired at its $30,000 carrying (book) value in exchange for cash.
2. The only changes affecting retained earnings are net income and cash dividends paid.
3. New equipment is acquired for $82,600 cash.
4. Received cash for the sale of equipment that had cost $73,600, yielding a $4,500 gain.
5. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement.
6. All purchases and sales of inventory are on credit.
7. 10.

   IKIBAN INCORPORATED
   Comparative Balance Sheets
   At June 30	2021	2020
   Assets
   Cash	$ 92,500	$ 69,000
   Accounts receivable, net	102,500	76,000
   Inventory	88,800	124,000
   Prepaid expenses	6,900	10,400
   Total current assets	290,700	279,400
   Equipment	149,000	140,000
   Accumulated depreciationEquipment	(39,500)	(21,500)
   Total assets	$ 400,200	$ 397,900
   Liabilities and Equity
   Accounts payable	$ 50,000	$ 67,500
   Wages payable	8,500	20,000
   Income taxes payable	5,900	8,800
   Total current liabilities	64,400	96,300
   Notes payable (long term)	55,000	85,000
   Total liabilities	119,400	181,300
   Equity
   Common stock, $5 par value	270,000	185,000
   Retained earnings	10,800	31,600
   Total liabilities and equity	$ 400,200	$ 397,900

   IKIBAN INCORPORATED
   Income Statement
   For Year Ended June 30, 2021
   Sales	$ 803,000
   Cost of goods sold	436,000
   Gross profit	367,000
   Operating expenses (excluding depreciation)	92,000
   Depreciation expense	83,600
   	191,400
   Other gains (losses)
   Gain on sale of equipment	4,500
   Income before taxes	195,900
   Income taxes expense	46,390
   Net income	$ 149,510

   Additional Information

8. A $30,000 notes payable is retired at its $30,000 carrying (book) value in exchange for cash.
9. The only changes affecting retained earnings are net income and cash dividends paid.
10. New equipment is acquired for $82,600 cash.
11. Received cash for the sale of equipment that had cost $73,600, yielding a $4,500 gain.
12. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement.
13. All purchases and sales of inventory are on credit.

QS 16-13 (Algo) Computing cash from asset sales LO P3 2020 CRUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 Assets Cash $ 99,300 Accounts receivable, net 42,600 Inventory 89,100 Prepaid expenses 5,600 Total current assets 236,600 Furniture 113,000 Accumulated depreciationFurniture (17,500) Total assets $ 332,100 Liabilities and Equity Accounts payable $ 15,700 Wages payable 9,400 Income taxes payable 1,500 Total current liabilities 26,600 Notes payable (long-term) 30,900 Total liabilities 57,500 Equity Common stock, $5 par value 241,200 Retained earnings 33,400 Total liabilities and equity $ 332,100 $ 24,900 52,800 99,200 4,500 181,400 127,500 (9,600) $ 299, 300 $ 22,000 5,000 2,800 29,800 74,300 104,100 192,600 2,600 $ 299, 300 CRUZ, INCORPORATED Income Statement For Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Income before taxes Income taxes expense Net income $ 512,300 329,700 182,600 93,500 39,400 49,700 18,100 $ 31,600 Furniture costing $74,800 is sold at its book value in 2021. Acquisitions of furniture total $60,300 cash, on which no depreciation is necessary because it is acquired at year-end. Complete the general ledger accounts to calculate cash received from the sale of furniture. Furniture Beginning balance Ending balance Accumulated Depreciation Beginning balance Ending balance Cost Accumulated depreciation Book value (Cash received) QS 16-16 (Algo) Computing cash flows from financing LO P3 Cash received from long-term notes payable $ 34,000 Purchase of investments 8,600 Cash dividends paid 27,600 Interest paid 13,800 Compute cash flows from financing activities using the above company information. (Amounts to be deducted should be indicated by a minus sign.) Financing Activities Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2021? Retained Earnings Beginning balance Ending balance IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2021 Cash flows from operating activities 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 Cash flows from investing activities Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end Exercise 16-12 (Algo) Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2021. Choose Numerator: Cash Flow on Total Assets Ratio 1 Choose Denominator: Cash Flow on Total Assets Ratio Cash flow on total assets ratio 1