27 Required information Part 1 of 2 Exercise 12-12 (Algo) Indirect: Preparing statement of cash flows LO P2, P3, A1 [The following information applies to the questions displayed below.] 3.33 points The following financial statements and additional information are reported. eBook 2019 References IKIBAN INC. Comparative Balance Sheets At June 30 2020 Assets Cash $100, 300 Accounts receivable, net 83,000 Inventory 75,800 Prepaid expenses 5,600 Total current assets 264, 700 Equipment 136,000 Accum. depreciation-Equipment ( 33,000) Total assets $367, 700 Liabilities and Equity Accounts payable $ 37,000 Wages payable 7,200 Income taxes payable 4,600 Total current liabilities 48,800 Notes payable (long term) 42,000 Total liabilities 90,800 Equity Common stock, $5 par value 244,000 Retained earnings 32,900 $ 56,000 63,000 104,500 7,800 231,300 127,000 (15,000) $343,300 $ 48,000 17,400 6,200 71,600 72,000 143,600 172,000 27,700 27 Common stock, $5 par value Retained earnings Total liabilities and equity 244, VUU 32,900 $367, 700 1/2,000 27,700 $343, 300 Part 1 of 2 3.33 points IKIBAN INC. Income Statement For Year Ended June 30, 2020 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense $ 738,000 423,000 315,000 79,000 eBook 70,600 165,400 References Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,200 168,600 45,090 $ 123,510 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 $69,600 cash. d. Received sale equipment that had cost $60,600, yielding a $3,200 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. 28 INCLICULUJITIUI LIIC JUIL VI YUPITICIIL LITUL TUU LUJl vuu,uvu, y Ciumiy uzuv yurl. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit. Part 2 of 2 Exercise 12-12 (Algo) Part 2 3.33 points (2) Compute the company's cash flow on total assets ratio for its fiscal year 2020. eBook Choose Numerator: Operating cash flows Cash Flow on Total Assets Ratio 1 Choose Denominator: Cash Flow on Total Assets Ratio 1 Average total assets Cash flow on total assets ratio 0 References =