The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30,...

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The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2018 and 2017 2018 2017 Assets Cash $ 87,500 $ 44,000 Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets 65,000 51,000 63,800 86,500 4,400 5,400 220,700 186,900 124,000 115,000 (27,000) (9,000) $317,700 $292,900 Liabilities and Equity Accounts payable $ 25,000 $ 30,000 Wages payable 6,000 15,000 Income taxes payable 3,400 3,800 Total current liabilities 34,400 48,800 Notes payable (long term) 30,000 60,000 Total liabilities 64,400 108,800 Equity Common stock, $5 par value 220,000 160,000 Retained earnings 33,300 24,100 $317,700 $292,900 Total liabilities and equity IKIBAN INC. Income Statement For Year Ended June 30, 2018 Sales $678,000 Cost of goods sold 411,000 Gross profit 267,000 Operating expenses Depreciation expense $58,600 Other expenses 67,000 Total operating expenses 125,600 141,400 Other gains (losses) Gain on sale of equipment 2,000 Income before taxes 143,400 Income taxes expense 43,890 Net income $ 99,510 Additional Information a. A $30,000 note 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 $57,600 cash. d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit. Exercise 12-11 Indirect: Preparing statement of cash flows (part 2) LO P1, P2, P3, A1 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2018. Choose Numerator: Operating cash flows Cash Flow on Total Assets Ratio 1 Choose Denominator: = Average total assets = Cash Flow on Total Assets Ratio Cash flow on total assets ratio / 305,300 = The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2018 and 2017 2018 2017 Assets Cash $ 87,500 $ 44,000 Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets 65,000 51,000 63,800 86,500 4,400 5,400 220,700 186,900 124,000 115,000 (27,000) (9,000) $317,700 $292,900 Liabilities and Equity Accounts payable $ 25,000 $ 30,000 Wages payable 6,000 15,000 Income taxes payable 3,400 3,800 Total current liabilities 34,400 48,800 Notes payable (long term) 30,000 60,000 Total liabilities 64,400 108,800 Equity Common stock, $5 par value 220,000 160,000 Retained earnings 33,300 24,100 $317,700 $292,900 Total liabilities and equity IKIBAN INC. Income Statement For Year Ended June 30, 2018 Sales $678,000 Cost of goods sold 411,000 Gross profit 267,000 Operating expenses Depreciation expense $58,600 Other expenses 67,000 Total operating expenses 125,600 141,400 Other gains (losses) Gain on sale of equipment 2,000 Income before taxes 143,400 Income taxes expense 43,890 Net income $ 99,510 Additional Information a. A $30,000 note 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 $57,600 cash. d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit. Exercise 12-11 Indirect: Preparing statement of cash flows (part 2) LO P1, P2, P3, A1 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2018. Choose Numerator: Operating cash flows Cash Flow on Total Assets Ratio 1 Choose Denominator: = Average total assets = Cash Flow on Total Assets Ratio Cash flow on total assets ratio / 305,300 =

Answer rating: 100% (QA)

Answer The cash flow on total assets ratio can be calculated using the following ... View the full answer