The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image](https://dsd5zvtm8ll6.cloudfront.net/questions/2024/05/663afa87e0925_255663afa87dc2ce.jpg)
Transcribed Image Text:
The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 Assets Cash Accounts receivable, net Prepaid expenses 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 Retained earnings Total liabilities and equity Sales Cost of goods sold 2021 2020 $ 100,900 $ 55,000 81,500 74,800 62,000 103,000 5,500 7,600 262,700 227,600 135,000 (32,500) $ 365,200 $ 36,000 7,100 126,000 (14,500) $ 339,100 $ 46,500 17,200 6,000 4,500 47,600 69,700 41,000 71,000 88,600 140,700 242,000 171,000 34,600 27,400 $ 365,200 $ 339,100 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $ 733,000 422,000 311,000 78,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 69,600 163,400 3,100 166,500 44,990 $ 121,510 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 $68,600 cash. d. Received cash for the sale of equipment that had cost $59,600, yielding a $3,100 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. Cash Flow on Total Assets Ratio Choose Numerator: I Choose Denominator: = Cash Flow on Total Assets Ratio 1 = Cash flow on total assets ratio = The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 Assets Cash Accounts receivable, net Prepaid expenses 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 Retained earnings Total liabilities and equity Sales Cost of goods sold 2021 2020 $ 100,900 $ 55,000 81,500 74,800 62,000 103,000 5,500 7,600 262,700 227,600 135,000 (32,500) $ 365,200 $ 36,000 7,100 126,000 (14,500) $ 339,100 $ 46,500 17,200 6,000 4,500 47,600 69,700 41,000 71,000 88,600 140,700 242,000 171,000 34,600 27,400 $ 365,200 $ 339,100 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $ 733,000 422,000 311,000 78,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 69,600 163,400 3,100 166,500 44,990 $ 121,510 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 $68,600 cash. d. Received cash for the sale of equipment that had cost $59,600, yielding a $3,100 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. Cash Flow on Total Assets Ratio Choose Numerator: I Choose Denominator: = Cash Flow on Total Assets Ratio 1 = Cash flow on total assets ratio =
Expert Answer:
Related Book For
Financial Accounting Information For Decisions
ISBN: 9781260705584
10th Edition
Authors: John J. Wild
Posted Date:
Students also viewed these accounting questions
-
Conceptos integrantes de Estados Financieros Conceptos integrantes de Estados Financieros En esta actividad reforzars tu competencia tcnica: Uso de informacin financiera y tu competencia laboral:...
-
what is the customer segment for lucky fish? Describe and provide at least 2 examples for each of the component below.
-
Woodland Hills Company reported income before taxes (pretax financial income) in its income statement of $60,000. Among the items included in the computation of pretax financial income were the...
-
What does the following code fragment print when \(\mathrm{n}\) is 50 ? Give a high-level description of what the code fragment does when presented with a positive integer n. Stack stack while (n> 0)...
-
A neighbors eight-year old child accidentally releases the brakes on his familys pick-up truck, sending it crashing into Bills home. Damage to the home amounts to $15,000. The truck is destroyed. Its...
-
Use the subset of 401KSUBS.RAW with fsize = 1; this restricts the analysis to single person households; see also Computer Exercise C4.8. (i) What is the youngest age of people in this sample? How...
-
Calculate the 6-month interest rate of the dollar on the basis of the following information: the 6-month euro rate is equal to 4 4/8 4 5/8%; the euro is currently trading at $1.0210/20; the euro...
-
Eon Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $920,000. Projected net cash inflows are as follows:...
-
A California distributor of sporting equipment expects to sell 10,800 cases of tennis balls during the coming year at a steady rate. Yearly carrying costs (to be computed on the average number of...
-
On August 1, 2016, Stephanie Ram, a sole proprietor, started a new business, Ram Wholesale Company. The company sells refrigerators (merchandise) to various retail stores and uses the periodic...
-
Shares of XYZ stock (which does not pay dividends) are trading at $460. The prices of European options on XYZ with 1 year to expiry are as follows: Strike Call Put 440 83.99 59.26 445 81.67 61.89 450...
-
Discuss the factors that must be considered in determining sample size.
-
Describe the circumstances that are required for use of each of the two different types of qualified auditors reports.
-
Indicate the information that may be used by the auditor to determine the expected population deviation rate.
-
What are the benefits to the auditor in using statistical sampling?
-
Define the term tolerable deviation rate and discuss the factors that should be considered in deciding on the tolerable rate for both substantive procedures and tests of controls.
-
6. Show that there are two plausible values for x in this triangle: Answer: x 1.41 or 7.78 cm 40 6 cm 5 cm
-
Match each of the key terms with the definition that best fits it. _______________ A record of the sequence of data entries and the date of those entries. Here are the key terms from the chapter. The...
-
Why are predetermined overhead rates rather than actual manufacturing overhead costs used to apply manufacturing overhead to jobs?
-
If a company allocates all of its overhead costs to jobs, does this guarantee that the company will earn a profit?
-
What is relevance?
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App