Answer Happy

The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2020 At June 30 Assets Cash $ 46,000 Accounts receivable, net 53,000 Inventory 89,500 Prepaid expenses 5,800 Total current assets 194,300 Equipment 117,000 Accumulated depreciation-Equipment (10,000) Total assets $ 301,300 Liabilities and Equity Accounts payable Wages payable $ 33,000 15,400 Income taxes payable 4,200 Total current liabilities 52,600 62,000 Notes payable (long term) Total liabilities 114,600 Equity Common stock, $5 par value Retained earnings 162,000 24,700 Total liabilities and equity $ 301,300 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales $ 688,000 Cost of goods sold 413,000 Gross profit 275,000 Operating expenses (excluding depreciation) 69,000 Depreciation expense 60,600 145,400 Other gains (losses) Gain on sale of equipment 2,200 Income before taxes 147,600 44,090 Income taxes expense Net income $ 103,510 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. 1 Prox 2021 $ 106,300 68,000 65,800 4,600 244,700 126,000 (28,000) $ 342,700 $ 27,000 6,200 3,600 36,800 32,000 68,800 224,000 49,900 $ 342,700
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 $59,600 cash. d. Received cash for the sale of equipment that had cost $50,600, yielding a $2,200 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 12-12 (Algo) Part 1 Required: (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021. (Amounts to be deducted should be indicated with a minus sign.) 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
Required information income statement items not affecting casn Changes in current operating assets and liabilities 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
Hint P Print References Exercise 12-12 (Algo) Part 2 (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: = = 1 1 I Cash Flow on Total Assets Ratio Cash flow on total assets ratio