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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 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.

(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.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 13E: Ratio of liabilities to stockholders equity and times interest earned The following data were taken...
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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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