Required Information [The following information applies to the questions displayed below.] The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 2020 $ 87,500 65,000 $ 44,000 $1,000 63,800 86,500 4,400 5,400 220,700 186,900 115,000 At June 30 Assets 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, $$ par value Retained earnings Total liabilities and equity IKIBAN INCORPORATED Income Statement 124,000 (27,000) 317,700 (9.000) $ 292,900 $ 25,000 6,000 $ 30,000 15,000 3,400 3,800 34.400 48,800 30,000 60,000 64.400 108,800 220.000 160,000 33,300 $317,700 24,100 $292,900 For Year Ended June 30, 2021 Sales $ 678,000 Cost of goods sold 411,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 267,000 67.000 58,600 141,400 2,000 143,400 43.890 $ 99.510 Additional Information a. A $30,000 notes payable is retired at its $30,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $57,600 cash. d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit. (2) Compute the company's cash flow on total assets ratio for its fiscal year 2021. Choose Numerator: Operating cash flows Cash Flow on Total Assets Ratio Choose Denominator: Average total assets Cash Flow on Total Assets Ratio Cash flow on total assets ratio 67,000
Required Information [The following information applies to the questions displayed below.] The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 2020 $ 87,500 65,000 $ 44,000 $1,000 63,800 86,500 4,400 5,400 220,700 186,900 115,000 At June 30 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $$ par value Retained earnings Total liabilities and equity IKIBAN INCORPORATED Income Statement 124,000 (27,000) 317,700 (9.000) $ 292,900 $ 25,000 6,000 $ 30,000 15,000 3,400 3,800 34.400 48,800 30,000 60,000 64.400 108,800 220.000 160,000 33,300 $317,700 24,100 $292,900 For Year Ended June 30, 2021 Sales $ 678,000 Cost of goods sold 411,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 267,000 67.000 58,600 141,400 2,000 143,400 43.890 $ 99.510 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. 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. (2) Compute the company's cash flow on total assets ratio for its fiscal year 2021. Choose Numerator: Operating cash flows Cash Flow on Total Assets Ratio Choose Denominator: Average total assets Cash Flow on Total Assets Ratio Cash flow on total assets ratio 67,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required Information
[The following information applies to the questions displayed below.]
The following financial statements and additional information are reported.
IKIBAN INCORPORATED
Comparative Balance Sheets
2021
2020
$ 87,500
65,000
$ 44,000
$1,000
63,800
86,500
4,400
5,400
220,700
186,900
115,000
At June 30
Assets
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, $$ par value
Retained earnings
Total liabilities and equity
IKIBAN INCORPORATED
Income Statement
124,000
(27,000)
317,700
(9.000)
$ 292,900
$ 25,000
6,000
$ 30,000
15,000
3,400
3,800
34.400
48,800
30,000
60,000
64.400
108,800
220.000
160,000
33,300
$317,700
24,100
$292,900
For Year Ended June 30, 2021
Sales
$ 678,000
Cost of goods sold
411,000
Gross profit
Operating expenses (excluding depreciation)
Depreciation expense
Other gains (losses)
Gain on sale of equipment
Income before taxes
Income taxes expense
Net income
267,000
67.000
58,600
141,400
2,000
143,400
43.890
$ 99.510
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.
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.
(2) Compute the company's cash flow on total assets ratio for its fiscal year 2021.
Choose Numerator:
Operating cash flows
Cash Flow on Total Assets Ratio
Choose Denominator:
Average total assets
Cash Flow on Total Assets Ratio
Cash flow on total assets ratio
67,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F409d5b21-85f9-46da-bc61-57eb391fc760%2F50ae2099-e762-448e-8861-b6db442ed84a%2Fl01sw0p_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions displayed below.]
The following financial statements and additional information are reported.
IKIBAN INCORPORATED
Comparative Balance Sheets
2021
2020
$ 87,500
65,000
$ 44,000
$1,000
63,800
86,500
4,400
5,400
220,700
186,900
115,000
At June 30
Assets
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, $$ par value
Retained earnings
Total liabilities and equity
IKIBAN INCORPORATED
Income Statement
124,000
(27,000)
317,700
(9.000)
$ 292,900
$ 25,000
6,000
$ 30,000
15,000
3,400
3,800
34.400
48,800
30,000
60,000
64.400
108,800
220.000
160,000
33,300
$317,700
24,100
$292,900
For Year Ended June 30, 2021
Sales
$ 678,000
Cost of goods sold
411,000
Gross profit
Operating expenses (excluding depreciation)
Depreciation expense
Other gains (losses)
Gain on sale of equipment
Income before taxes
Income taxes expense
Net income
267,000
67.000
58,600
141,400
2,000
143,400
43.890
$ 99.510
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.
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.
(2) Compute the company's cash flow on total assets ratio for its fiscal year 2021.
Choose Numerator:
Operating cash flows
Cash Flow on Total Assets Ratio
Choose Denominator:
Average total assets
Cash Flow on Total Assets Ratio
Cash flow on total assets ratio
67,000
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