Refer to the information in Exercise 16-12. Using the direct method, prepare the statement of cash flows for the year ended June 30, 2021.

Data From Exercise 16-12

The following financial statements and additional information are reported. 

(1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021. 

(2) Compute the company’s cash flow on total assets ratio for fiscal year 2021.

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IKIBAN INC. IKIBAN INC. Income Statement Comparative Balance Sheets For Year Ended June 30, 2021 At June 30 2021 2020 Sales $678,000 Assets Cost of goods sold. 411,000 Cash $ 87,500 $ 44,000 Gross profit .. 267,000 Accounts receivable, net 65,000 51,000 Operating expenses (excluding depreciation) 67,000 Inventory. 63,800 86,500 Depreciation expense 58,600 Prepaid expenses. 4,400 5,400 141,400 Total current assets 220,700 186,900 Other gains (losses) Equipment.. 124,000 115,000 Gain on sale of equipment Accum. depreciation-Equipment... (27,000) $317,700 2,000 (9,000) $292,900 Income before taxes. 143,400 Total assets. Income taxes expense 43,890 Liabilities and Equity Net income. $ 99,510 Accounts payable $ 25,000 $ 30,000 Wages payable. 6,000 15,000 Income taxes payable 3,400 3,800 Additional Information Total current liabilities 34,400 48,800 a. A $30,000 notes payable is retired at its $30,000 carrying (book) value in exchange for cash. Notes payable (long term) Total liabilities. 30,000 60,000 64,400 108,800 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. Equity Common stock, $5 par value.. 220,000 160,000 Retained earnings 33,300 24,100 Total liabilities and equity. $317,700 $292,900 Activate W f. All purchases and sales of inventory are on credit. Check (1b) Cash paid for dividends, $90,310 (1d) Cash received from equip. sale, $10,000 Go to Settings