The following financial statements and additional information are


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The following financial statements and additional information are reported Prepare a statement of cash flows for the year ended June 30, 2015, using the indirect method Compute the company’s cash flow on total assets ratio for its fiscal year 2015. Book1.xlsx 2015 Assets Cash $ 2014 102,800 $ 65,100 Accounts receivable, net 69,400 51,900 Inventory 66,300 96,800 4,700 5,500 Total current assets 243,200 219,300 Equipme nt 131,200 120,000 Accum. depreciatio n— Equipment (28,500 ) (10,900 ) Prepaid expenses Total assets $ 345,900 $ 328,400 $ 26,100 $ 32,700 Liabilities and Equity Accounts payable Wages payable 7,100 16,500 Income taxes payable 2,000 4,300 Total current liabilities 35,200 53,500 Notes payable (long term) 54,000 78,000 Total liabilities 89,200 131,500 Equity Common stock, $5 par value 232,000 189,000 Retained earnings 24,700 7,900 Total liabilities and equity $ 345,900 $ 328,400 IKIBAN INC. Income Statement For Year Ended June 30, 2015 $ 673,000 Sales Cost of goods sold 403,000 Gross profit 270,000 Operatin g expenses Depr eciation expense Other expenses Total operating expenses $ 58,200 66,900 125,100 144,900 Other gains (losses) Gain on sale of equipment 2,900 Income before taxes 147,800 Income taxes expense 59,120 Net income $ Additional Informatio n a. A $24,000 note payable is retired at its $24,000 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 $60,100 cash. 88,680 d. Received cash for the sale of equipment that had cost $48,900, yielding a $2,900 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. Read more

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