(2) Compute the company's cash flow on total assets ratio for its fiscal year 2021. Cash Flow on Total Assets Ratio I Choose Denominator: Choose Numerator: = Cash Flow on Total Assets Ratio Cash flow on total assets ratio

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following financial statements and additional information are reported.
IKIBAN INCORPORATED
Comparative Balance Sheets
2021
At June 30
Assets
Cash
Accounts receivable, net
Inventory
Prepaid expenses
Total current assets
Equipment
Accumulated depreciation-Equipment
2020
$ 94,900
96,500
84,800
6,500
282,700
145,000
(37,500)
$ 390,200
$ 65,000
72,000
118,000
9,600
264,600
136,000
(19,500)
$ 381,100
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
$ 46,000
8,100
5,500
59,600
51,000
110,600
$ 61,500
19,200
8,000
88,700
81,000
169,700
262,000
17,600
$ 390,200
181,000
30,400
$ 381,100
Total liabilities and equity
IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2021
$ 783,000
432,000
351,000
88,000
79,600
183,400
Sales
Cost of goods sold
Gross profit
Operating expenses (excluding depreciation)
Depreciation expense
Other gains (losses)
Gain on sale of equipment
Income before taxes
4,100
187,500
45,990
$ 141,510
Income taxes expense
Net income
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 $78,600 cash.
d. Received cash for the sale of equipment that had cost $69,600, yielding a $4,100 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 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:
Cash Flow on Total Assets Ratio
Cash flow on total assets ratio
%3D
Transcribed Image Text:The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 At June 30 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment 2020 $ 94,900 96,500 84,800 6,500 282,700 145,000 (37,500) $ 390,200 $ 65,000 72,000 118,000 9,600 264,600 136,000 (19,500) $ 381,100 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 $ 46,000 8,100 5,500 59,600 51,000 110,600 $ 61,500 19,200 8,000 88,700 81,000 169,700 262,000 17,600 $ 390,200 181,000 30,400 $ 381,100 Total liabilities and equity IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $ 783,000 432,000 351,000 88,000 79,600 183,400 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes 4,100 187,500 45,990 $ 141,510 Income taxes expense Net income 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 $78,600 cash. d. Received cash for the sale of equipment that had cost $69,600, yielding a $4,100 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 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: Cash Flow on Total Assets Ratio Cash flow on total assets ratio %3D
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