Information: The following financial statements and additional information are reported.

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 merchandise inventory are on credit.
Required (1) prepare a statement of cash flows for the year ended June 30, 2013, using the indirect method, and (2) compute the company’s cash flow on total assets ratio for its fiscal year 2013.

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Sales.... IKIBAN INC. Income Statement For Year Ended June 30, 2013 Cost of goods sold .... $678,000 411,000 267,000 Gross profit.... Operating expenses Depreciation expense $58,600 Other expenses 67,000 Total operating expenses 125,600 141,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,000 143,400 43,890 $ 99,510