$678,000 411,000 Exercise 16-12 direct: Preparing atement of cash flows P2 P3 $7,000 loss. cash, resulting in a cash flows using the indirect method for the year ended June 30, 2021. (2) Compute the company's cash The following financial statements and additional information are reported. (1) Prepare a statement of flow on total assets ratio for fiscal year 2021. IKIBAN INC. Income Statement For Year Ended June 30, 2021 IKIBAN INC. Comparative Balance Sheets 2021 At June 30 2020 Assets Cash Sales. 267,000 Accounts receivable, net Inventory... $87.500 65,000 544,000 Cost of goods sold 67,000 63.800 51.000 Gross profit... Depreciation expense Operating expenses (excluding depreciation)... Prepaid expenses. 86,500 58,600 4,400 Total current assets 141,400 220,700 5.400 Equipment.. 124,000 186.900 Accum. depreciation-Equipment... 115.000 2,000 (27,000) Total assets.. Other gains (losses) $317,700 9000 Gain on sale of equipment 143,400 $292.900 43,890 Liabilities and Equity Income before taxes... $ 99,510 Accounts payable.. $ 25.000 Income taxes expense Net income. 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 $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. 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 Wages payable... $30,000 6,000 15.000 Income taxes payable 3.400 3,800 Total current liabilities 34,400 48.800 Notes payable (long term) 30,000 60,000 Total liabilities. 64,400 108,800 Equity Common stock, $5 par value....... 220,000 160,000 Retained earnings 33,300 24,100 Total liabilities and equity.. $317,700 $292.900