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 aquired for 57,600 cash.

D. Received cash for the sale of equipment that had cost $48,600, yeidling a $2000 gain.

E. Prepaid expenses and wages payable relate to other expenses on the income statement.

F. All purchases and sales of inventory are on credit.

Required.

1. Prepare a statement of cash flows for the year ended June 30,2015, using the indirect method.

2. Compute the company's cash flow on total assets ratio for its fiscal year 2015.