2 25 points Required information Exercise 12-12 (Algo) Indirect: Preparing statement of cash flows LO P2, P3, A1 (The following information applies to the questions displayed below] The following financial statements and additional information are reported. IRIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 2020 Assets Cas 96,700 $62,000 Accounts receivable, t 92,000 69.000 Investory $1,000 113,500 Prepaid expenses 6,200 9,000 He Total current assets i 276,700 253,500 Equip 142,000 Accumulated depreciation-Equipest (36,000) Total s $382,700 133,000 (10,900) $368,500 As Liabilities and Equity Reference 01 Accounts payable Mages payable Income taxes payable Total current liabilities Notes payable (long term Total liabilities Equity Common stock, $5 par vale Retained earnings 43,000 $ 57,000 7,000 5,200 18,600 7,400 56,000 3,000 48,000 79,000 104,000 163,000 254,000 178,000) 22,700 39,500 Total liabilities and equity $382,700 364,500 IRIBAN INCORPORATED Income Statement Check my work 1 Part 1 of 2 25 points eBook Common stock, $5 par value Retained earnings Total liabilities and equity Sales 256,000 22,700 178,000 29,500 $368,500 $302,700 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021) Cost of goods sold $ 768,000 429,000 339,000 85,000 76,600 177,400 3,800 181,200 Hint Ask Print Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information 45,690 $ 135,510 a. A $30,000 notes 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 $75,600 cash. d. Received cash for the sale of equipment that had cost $66,600, yielding a $3,800 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit. References Check m 1 Part 1 of 2 25 Required (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021 (Amounts to be deducted should be indicated with a c minus sign) Cash flows from operating activities BAN, INCORPORATED Statement of Cash Flows Indirect Method For Year Ended June 30, 20211 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash A Pri Changes in current operating assets and b Reference Cash fows from investing activities Cash fows from finanong activities Check my work 1 Part 1 of 2 25 points H Pit Required information Cash flows from investing activities Cash flows from financing activities References Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end Check my work 5 Part 2 of 2 points a. A $30,000 notes 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 $75,600 cash. d. Received cash for the sale of equipment that had-cost $66,600, yielding a $3,800 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit. Book Hint Exercise 12-12 (Algo) Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2021. Choose Numerator: Ask to Print References Cash Flow on Total Assets Ratio Choose Denominator: Cash Flow on Total Assets Ratio Cash flow on total assets ratio