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Terms in this set (69)

IKIBAN INC.
Comparative Balance Sheets
June 30, 2015 and 2014
2015 2014
Assets
Cash $105,200 $53,000
Accounts receivable, net 69,800 51,400
Inventory 66,600 96,000
Prepaid expenses 5,000 6,100

Total current assets 246,600 206,500
Equipment 132,800 120,000
Accum. depreciation—Equipment (29,000 ) (10,100 )

Total assets $350,400 $316,400

Liabilities and Equity
Accounts payable $6,400 $32,200
Wages payable 7,300 16,600
Income taxes payable 2,900 4,000

Total current liabilities 36,600 52,800
Notes payable (long term) 53,000 73,000

Total liabilities 89,600 125,800 Equity Common stock, $5 par value 236,000 183,000
Retained earnings 24,800 7,600

Total liabilities and equity $350,400 $316,400


IKIBAN INC.
Income Statement
For Year Ended June 30, 2015
Sales $672,000
Cost of goods sold 402,000


Gross profit 270,000
Operating expenses
Depreciation expense $57,900
Other expenses 66,300


Total operating expenses 124,200
145,800
Other gains (losses)
Gain on sale of equipment 2,300

Income before taxes 148,100
Income taxes expense 59,240

Net income $88,860



Additional Information
a. A $20,000 note payable is retired at its $20,000 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 $62,300 cash.
d. Received cash for the sale of equipment that had cost $49,500, yielding a $2,300 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.

1)
Prepare a statement of cash flows for the year ended June 30, 2015, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)


(2)
Compute the company's cash flow on total assets ratio for its fiscal year 2015.