The following financial statements and additional information are reported. 6 IKIBAN INC. Comparative Balance Sheets June 30, 20 18 and 2017 2018 2017 Assets $ 44,000 51,000 86,500 5,400 186,900 115,000 (9,000) 87,500 65,000 63,800 4,400 220,700 124,000 (27,000) Cash Accounts receivable, net Inventory Prepaid expenses Total current assets 16.7 points Equipment Accum. depreciation-Equipment еВook Print $317,700 $292,900 Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities References 25,000 6,000 3,400 $30,000 15,000 3,800 48,800 60,000 108,800 34,400 30,000 64,400 Equity Common stock, $5 par value Retained earnings 160,000 24,100 220,000 33,300 $317,700 Total liabilities and equity $292,900 IKIBAN INC. Income Statement For Year Ended June 30, 2018 Sales $678,000 411,000 267,000 Cost of goods sold Gross profit Operating expenses Depreciation expense $58,600 IKIBAN INc. Income Statement For Year Ended June 30, 2018 Sales $678,000 411.000 267,000 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses $58,600 67,000 16,7 125,600 141,400 points 0ther gains (losses) Gain on sale of equipment Income before taxes Income taxes expense 2,000 143,400 43,890
Additional Information
a. A $30,000 note 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 Other Expenses on the income statement.
f. All purchases and sales of inventory are on credit.
g. The only changes affecting retained earnings are net income and cash dividends paid.
h. New equipment is acquired for $57,600 cash
i. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 gain.
j. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement
k. All purchases and sales of inventory are on credit.
Compute the company's cash flow on total assets ratio for its fiscal year 2018.