The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30
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Question:
The following financial statements and additional information are reported.
IKIBAN INCORPORATED | ||
Comparative Balance Sheets | ||
At June 30 | 2021 | 2020 |
---|---|---|
Assets | ||
Cash | $ 94,300 | $ 66,000 |
Accounts receivable, net | 98,000 | 73,000 |
Inventory | 85,800 | 119,500 |
Prepaid expenses | 6,600 | 9,800 |
Total current assets | 284,700 | 268,300 |
Equipment | 146,000 | 137,000 |
Accumulated depreciation—Equipment | (38,000) | (20,000) |
Total assets | $ 392,700 | $ 385,300 |
Liabilities and Equity | ||
Accounts payable | $ 47,000 | $ 63,000 |
Wages payable | 8,200 | 19,400 |
Income taxes payable | 5,600 | 8,200 |
Total current liabilities | 60,800 | 90,600 |
Notes payable (long term) | 52,000 | 82,000 |
Total liabilities | 112,800 | 172,600 |
Equity | ||
Common stock, $5 par value | 264,000 | 182,000 |
Retained earnings | 15,900 | 30,700 |
Total liabilities and equity | $ 392,700 | $ 385,300 |
IKIBAN INCORPORATED | |
Income Statement | |
For Year Ended June 30, 2021 | |
Sales | $ 788,000 |
---|---|
Cost of goods sold | 433,000 |
Gross profit | 355,000 |
Operating expenses (excluding depreciation) | 89,000 |
Depreciation expense | 80,600 |
185,400 | |
Other gains (losses) | |
Gain on sale of equipment | 4,200 |
Income before taxes | 189,600 |
Income taxes expense | 46,090 |
Net income | $ 143,510 |
Additional Information
- A $30,000 notes payable is retired at its $30,000 carrying(book) value in exchange for cash.
- The only changes affecting retained earnings are net income and cash dividends paid.
- New equipment is acquired for $79,600 cash.
- Received cash for the sale of equipment that had cost $70,600,yielding a $4,200 gain.
- Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement.
- 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.
Cash Flow on Total Assets Ratio Choose Numerator:/Choose Denominator:=Cash Flow on Total Assets Ratio/=Cash flow on total assets ratio/=0
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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