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IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018
	2019				2018
Assets
Cash	$	97,300			$	61,000
Accounts receivable, net		90,500				68,000
Inventory		80,800				112,000
Prepaid expenses		6,100				8,800
Total current assets		274,700				249,800
Equipment		141,000				132,000
Accum. depreciationEquipment		(35,500	)			(17,500	)
Total assets	$	380,200			$	364,300
Liabilities and Equity
Accounts payable	$	42,000			$	55,500
Wages payable		7,700				18,400
Income taxes payable		5,100				7,200
Total current liabilities		54,800				81,100
Notes payable (long term)		47,000				77,000
Total liabilities		101,800				158,100
Equity
Common stock, $5 par value		254,000				177,000
Retained earnings		24,400				29,200
Total liabilities and equity	$	380,200			$	364,300

IKIBAN INC. Income Statement For Year Ended June 30, 2019
Sales				$	763,000
Cost of goods sold					428,000
Gross profit					335,000
Operating expenses
Depreciation expense	$	75,600
Other expenses		84,000
Total operating expenses					159,600
					175,400
Other gains (losses)
Gain on sale of equipment					3,700
Income before taxes					179,100
Income taxes expense					45,590
Net income				$	133,510

Additional Information

1. A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash.
2. The only changes affecting retained earnings are net income and cash dividends paid.
3. New equipment is acquired for $74,600 cash.
4. Received cash for the sale of equipment that had cost $65,600, yielding a $3,700 gain.
5. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
6. All purchases and sales of inventory are on credit.

Exercise 12-11 Part 1

Required:

(1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2019. (Amounts to be deducted should be indicated with a minus sign.)

(2) Compute the companys cash flow on total assets ratio for its fiscal year 2019.

2.Golden Corp.'s current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes.

GOLDEN CORPORATION Comparative Balance Sheets December 31
	Current Year						Prior Year
Assets
Cash		$	167,000					$	110,300
Accounts receivable			87,500						74,000
Inventory			605,500						529,000
Total current assets			860,000						713,300
Equipment			343,000						302,000
Accum. depreciationEquipment			(159,500	)					(105,500	)
Total assets		$	1,043,500					$	909,800
Liabilities and Equity
Accounts payable		$	93,000					$	74,000
Income taxes payable			31,000						26,600
Total current liabilities			124,000						100,600
Equity
Common stock, $2 par value			595,600						571,000
Paid-in capital in excess of par value, common stock			201,400						164,500
Retained earnings			122,500						73,700
Total liabilities and equity		$	1,043,500					$	909,800

GOLDEN CORPORATION Income Statement For Current Year Ended December 31
Sales				$	1,807,000
Cost of goods sold					1,089,000
Gross profit					718,000
Operating expenses
Depreciation expense	$	54,000
Other expenses		497,000			551,000
Income before taxes					167,000
Income taxes expense					26,200
Net income				$	140,800

Additional Information on Current Year Transactions

1. Purchased equipment for $41,000 cash.
2. Issued 12,300 shares of common stock for $5 cash per share.
3. Declared and paid $92,000 in cash dividends.

1.Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.)