Answer Happy

IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 Assets Cash $ 100,900 Accounts receivable, net 81,500 Inventory 74,800 Prepaid expenses 5,500 262,700 Total current assets. Equipment 135,000 Accumulated depreciation-Equipment (32,500) Total assets $365,200 Liabilities and Equity Accounts payable Wages payable $36,000 7,100 Income taxes payable 4,500 Total current liabilities 47,600 41,000 Notes payable (long term) Total liabilities 88,600 Equity Common stock, $5 par value 242,000 34,600 Retained earnings Total liabilities and equity $365,200 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales $ 733,000 Cost of goods sold 422,000 Gross profit 311,000 Operating expenses (excluding depreciation) 78,000 Depreciation expense 69,600 163,400 Other gains (losses). Gain on sale of equipment Income before taxes Income taxes expense Net income 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. Exercise 16-12 (Algo) Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2021. > Answer is complete but not entirely correct. Cash Flow on Total Assets Ratio 1 Choose Denominator: Choose Numerator: Operating cash flows ✓1 Average total assets ✓= $ 338,750 X = 167,510 / $ 2020 $ 55,000 62,000 103,000 7,600 227,600 126,000 (14,500) $ 339,100 $ 46,500 17,200 6,000 69,700 71,000 140,700 171,000 27,400 $ 339,100 Cash Flow on Total Assets Ratio Cash flow on total assets ratio 49.4%