Question

Part 1

Required Information [The following information applies to the questions displayed below The following financial statements and additional information are reported IKIBAN INC. Comparative Balance Sheets June 30, 2817 and 2016 2816 2017 As sets $73, 100 101,e0e 87,880 6,800 268,700 148.000 (39.08e) $68,000 75,eee 122,50e 10,200 275,780 139,eee (21,000) $393,700 Cash Accounts receivable, Inventory Prepaid expenses net Total current assets Equipment Accum. depreciation-Equipment Total assets $377,700 Liabilities and Equity Accounts payable Wages payable Income taxes payable $ 49,000 8,400 5,8ee 63,200 54,080 $ 66,000 19, 8ee 8,680 94,400 84,08e 178,400 Total current liabilities Notes payable (long term) Total liabilities 117,20e Equity Common stock, $5 par value Retained earnings 268,03e 7 588 184,000 31 300 $377,70e Total liabilities and equity aez EGES IKIBAN INC Income Statement For Year tnded Juna 38, 2012 $798 880 Sales cost of goods sold ross profit Operating expenses Depreciation expense Other expentes 363 000 $82 680 191 o00

Part 2

Answer 1

IKIBAN INC Statement of Cash Flows (Indirect Method) For year Ended June 30,2017 Cash flows from operating activities Net Income Addustments to reconcile net income to net cash flow from operating activities Income statement items not effecting cash Depreciation Gain on Sale of Investment $ 147,510 $ $ 82,600 (4,400) $ 78,200 Changes in Current operating assets and liabilities Increase in accounts receivables Decrease in Inventory Decrease in Prepaid Expenses Decrease in Accounts payable Decrease in Wages payable Decrease in Income Tax payable Net cash flow From operating activities $ $ $ $ $ $ (26,000) 34,700 3,400 (17,000) (11,400) (2,800) $ (19,100) $ 206,610 Cash flows from investing activities: Cash from sale of Equipment Cash used for purchase of equipment Net cash flow from investing activities $ $ 12,400 (81,600) $ (69,200) Cash flows from Financing activities: Cash paid for dividends Repayment of Notes payable Cash from sale of common stock $ (171,310) $ (30,000) $ 69,000

Net cash flow from financing activities Increase in cash Cash balance at prior year end Cash balance at current year end $ (132,310) $ 5,100 $ 68,000 $ 73,100 Working Notes: Cash from sale of Equipment Gross Value of Equipment Less: Depreciation of sale of Equipment ($82600+$21000-$39000) Net cost of Equipment Add: Gain on sale of Equipment $ $ $ $ $ 72,600 64,600 8,000 4,400 12.400 Cash paid for dividends Opening balance of Retained earnings Add: Net Income $ $ $ $ $ 31,300 147,510 178,810 7,500 171,310 Less: closing balance of Retained earnings

ZIL Cash Flow on Total Assets Ratio Choose Numerator / Choose Denominator = Cash Flow on Total Assets Ratio Cash flow from operating activities Average Total assets =Cash Flow on Total Assets Ratio 206,610 / S 385,700 = 53.57% Avearge Total assets = ($377,700+$393,700)/2 = $385,700