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In: AccountingRequired information[The following information applies to the questionsdisplayed below.]The following financial statements and...Required information[The following information applies to the questionsdisplayed below.]The following financial statements and additional informationare reported.IKIBAN INC.Comparative Balance SheetsJune 30, 2017 and 201620172016AssetsCash$87,500$44,000Accountsreceivable, net65,00051,000Inventory63,80086,500Prepaidexpenses4,4005,400Total currentassets220,700186,900Equipment124,000115,000Accum.depreciation—Equipment(27,000)(9,000)Totalassets$317,700$292,900Liabilities andEquityAccountspayable$25,000$30,000Wagespayable6,00015,000Income taxespayable3,4003,800Total currentliabilities34,40048,800Notes payable(long term)30,00060,000Totalliabilities64,400108,800EquityCommon stock, $5par value220,000160,000Retainedearnings33,30024,100Totalliabilities and equity$317,700$292,900  IKIBAN INC.Income StatementFor Year Ended June 30, 2017Sales$678,000Cost of goodssold411,000Grossprofit267,000OperatingexpensesDepreciationexpense$58,600Otherexpenses67,000Total operatingexpenses125,600141,400Other gains(losses)Gain on sale ofequipment2,000Income beforetaxes143,400Income taxesexpense43,890Net income$99,510Additional InformationA $30,000 note payable is retired at its $30,000 carrying (book)value in exchange for cash.The only changes affecting retained earnings are net income andcash dividends paid.New equipment is acquired for $57,600 cash.Received cash for the sale of equipment that had cost $48,600,yielding a $2,000 gain.Prepaid Expenses and Wages Payable relate to Other Expenses onthe income statement.All purchases and sales of inventory are on credit.equired:(1) Prepare a statement of cash flows for theyear ended June 30, 2017, using the indirect method.(Amounts to be deducted should be indicated with a minussign.)2. Compute the company's cash flow on total assets ratio for itsfiscal year 2017.