(2) Compute the companys cash flow on total assets ratio for its fiscal year 2021.

Exercise 16-12 (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. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 2020 Assets Cash $ 102, 100 $ 53.000 Accounts receivable, net 78,500 60.000 inventory 72. 800 100,000 Prepaid expenses 5.300 7 200 Total current assets 258, 700 220,200 Equipment 133,000 124.000 Accumulated depreciation-Equipment (31.500) (13.500) Total assets $ 360,200 $ 330, 700 Liabilities and Equity Accounts payable $ 34,000 $ 43. 500 Wages payable 6.900 16 800 Income taxes payable 4.300 5.600 Total current liabilities 45, 200 65. 900 Notes payable (long term 39.000 69.000 Total liabilities 84, 200 134.900 Equity Common stock. $5 par value 238,000 169.000 Retained earnings 38.000 26 800 Total liabilities and equity $ 360,200 $ 330.700 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales $ 723.000 Cost of goods sold 420,000 Gross profit 303.000 Operating expenses (excluding depreciation) 76.000 Depreciation expense 67. 600 159, 400 Other gains (losses) Gain on sale of equipment 2.900 Income before taxes 162 300 Income taxes expense 44 790 Net income $ 117.510 Additional Information 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 $66.600 cash. d. Received cash for the sale of equipment that had cost $57,600, yielding a $2,900 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 Exercise 16-12 (Algo) Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2021. Cash Flow on Total Assets Ratio Choose Numerator: Choose Denominator: Cash Flow on Total Assets Ratio Operating cash flows 1 Average total assets Cash flow on total assets ratio 167.5101 $ 338.750 = 49.4%