Required information Exercise 12-12 (Algo) Indirect: Preparing statement of cash flows LO P2, P3, A1 [The following information applies to the questions displayed below.) The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 Assets Cash Accounts receivable, net Prepaid expenses Inventory 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 2021 2020 $ 95,500 95,000 $ 64,000 83,800 71,000 116,500 6,400 9,400 280,700 260,900 144,000 (37,000) $ 387,700 $ 45,000 8,000 135,000 (19,000) $ 376,900 $ 60,000 19,000 7,800 5,400 58,400 86,800 50,000 80,000 108,400 166,800 260,000 180,000 19,300 30,100 $ 387,700 $ 376,900 Sales IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $ 778,000 431,000 347,000 87,000 Cost of goods sold 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 78,600 181,400 4,000 185,400 45,890 $ 139,510 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 $77,600 cash. d. Received cash for the sale of equipment that had cost $68,600, yielding a $4,000 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. Exercise 12-12 (Algo) Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2021. Choose Numerator: Cash Flow on Total Assets Ratio Choose Denominator: Cash Flow on Total Assets Ratio Cash flow on total assets ratio

Required information Exercise 12-12 (Algo) Indirect: Preparing statement of cash flows LO P2, P3, A1 [The following information applies to the questions displayed below.) The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 Assets Cash Accounts receivable, net Prepaid expenses Inventory 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 2021 2020 $ 95,500 95,000 $ 64,000 83,800 71,000 116,500 6,400 9,400 280,700 260,900 144,000 (37,000) $ 387,700 $ 45,000 8,000 135,000 (19,000) $ 376,900 $ 60,000 19,000 7,800 5,400 58,400 86,800 50,000 80,000 108,400 166,800 260,000 180,000 19,300 30,100 $ 387,700 $ 376,900 Sales IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $ 778,000 431,000 347,000 87,000 Cost of goods sold 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 78,600 181,400 4,000 185,400 45,890 $ 139,510 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 $77,600 cash. d. Received cash for the sale of equipment that had cost $68,600, yielding a $4,000 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. Exercise 12-12 (Algo) Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2021. Choose Numerator: Cash Flow on Total Assets Ratio Choose Denominator: Cash Flow on Total Assets Ratio Cash flow on total assets ratio

Required information Exercise 12-12 (Algo) Indirect: Preparing statement of cash flows LO P2, P3, A1 [The following information applies to the questions displayed below.) The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 Assets Cash Accounts receivable, net Prepaid expenses Inventory 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 2021 2020 $ 95,500 95,000 $ 64,000 83,800 71,000 116,500 6,400 9,400 280,700 260,900 144,000 (37,000) $ 387,700 $ 45,000 8,000 135,000 (19,000) $ 376,900 $ 60,000 19,000 7,800 5,400 58,400 86,800 50,000 80,000 108,400 166,800 260,000 180,000 19,300 30,100 $ 387,700 $ 376,900 Sales IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $ 778,000 431,000 347,000 87,000 Cost of goods sold 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 78,600 181,400 4,000 185,400 45,890 $ 139,510 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 $77,600 cash. d. Received cash for the sale of equipment that had cost $68,600, yielding a $4,000 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. Exercise 12-12 (Algo) Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2021. Choose Numerator: Cash Flow on Total Assets Ratio Choose Denominator: Cash Flow on Total Assets Ratio Cash flow on total assets ratio

FINANCIAL ACCOUNTING

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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Required information
Exercise 12-12 (Algo) Indirect: Preparing statement of cash flows LO P2, P3, A1
[The following information applies to the questions displayed below.)
The following financial statements and additional information are reported.
IKIBAN INCORPORATED
Comparative Balance Sheets
At June 30
Assets
Cash
Accounts receivable, net
Prepaid expenses
Inventory
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
2021
2020
$ 95,500
95,000
$ 64,000
83,800
71,000
116,500
6,400
9,400
280,700
260,900
144,000
(37,000)
$ 387,700
$ 45,000
8,000
135,000
(19,000)
$ 376,900
$ 60,000
19,000
7,800
5,400
58,400
86,800
50,000
80,000
108,400
166,800
260,000
180,000
19,300
30,100
$ 387,700
$ 376,900
Sales
IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2021
$ 778,000
431,000
347,000
87,000
Cost of goods sold
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
78,600
181,400
4,000
185,400
45,890
$ 139,510
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 $77,600 cash.
d. Received cash for the sale of equipment that had cost $68,600, yielding a $4,000 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.
Exercise 12-12 (Algo) Part 2
(2) Compute the company's cash flow on total assets ratio for its fiscal year 2021.
Choose Numerator:
Cash Flow on Total Assets Ratio
Choose Denominator:
Cash Flow on Total Assets Ratio
Cash flow on total assets ratio

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