(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 = 0 At June 30 Assets IKIBAN INCORPORATED Comparative Balance Sheets Cash Accounts receivable, net Inventory Prepaid expenses 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 IKIBAN INCORPORATED Income Statement 2021 $ 87,500 65,000 2020 $ 44,000 51,000 86,500 63,800 4,400 5,400 220,700 186,900 124,000 (27,000) 115,000 $ 317,700 $ 25,000 6,000 (9,000) $ 292,900 $ 30,000 15,000 3,800 3,400 34,400 48,800 30,000 60,000 64,400 108,800 220,000 33,300 160,000 24,100 $ 317,700 $ 292,900 For Year Ended June 30, 2021 $ 678,000 411,000 267,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information 67,000 58,600 141,400 2,000 143,400 43,890 $ 99,510 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 $57,600 cash. d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 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.

Intermediate Accounting: Reporting And Analysis
3rd Edition
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Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
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Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
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(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
=
0
Transcribed Image Text:(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 = 0
At June 30
Assets
IKIBAN INCORPORATED
Comparative Balance Sheets
Cash
Accounts receivable, net
Inventory
Prepaid expenses
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
IKIBAN INCORPORATED
Income Statement
2021
$ 87,500
65,000
2020
$ 44,000
51,000
86,500
63,800
4,400
5,400
220,700
186,900
124,000
(27,000)
115,000
$ 317,700
$ 25,000
6,000
(9,000)
$ 292,900
$ 30,000
15,000
3,800
3,400
34,400
48,800
30,000
60,000
64,400
108,800
220,000
33,300
160,000
24,100
$ 317,700
$ 292,900
For Year Ended June 30, 2021
$ 678,000
411,000
267,000
Gross profit
Operating expenses (excluding depreciation)
Depreciation expense
Other gains (losses)
Gain on sale of equipment
Income before taxes
Income taxes expense
Net income
Additional Information
67,000
58,600
141,400
2,000
143,400
43,890
$ 99,510
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 $57,600 cash.
d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 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.
Transcribed Image Text:At June 30 Assets IKIBAN INCORPORATED Comparative Balance Sheets Cash Accounts receivable, net Inventory Prepaid expenses 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 IKIBAN INCORPORATED Income Statement 2021 $ 87,500 65,000 2020 $ 44,000 51,000 86,500 63,800 4,400 5,400 220,700 186,900 124,000 (27,000) 115,000 $ 317,700 $ 25,000 6,000 (9,000) $ 292,900 $ 30,000 15,000 3,800 3,400 34,400 48,800 30,000 60,000 64,400 108,800 220,000 33,300 160,000 24,100 $ 317,700 $ 292,900 For Year Ended June 30, 2021 $ 678,000 411,000 267,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information 67,000 58,600 141,400 2,000 143,400 43,890 $ 99,510 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 $57,600 cash. d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 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.
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