The following financial statements and additional information are reported. (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2019. (2) Compute the company’s cash flow on total assets ratio for fiscal year 2019.

IKIBAN INC. Income Statement For Year Ended June 30, 2019

IKIBAN INC. Comparative Balance Sheets

 

 

Sales .... $678,000 Cost of goods sold .. Gross profit..... Operating expenses 411,000 267,000 Depreciation expense $58,600 Other expenses 67,000 Total operating expenses. 125,600 141,400 Other gains (losses) Gain on sale of equipment. 2,000 Income before taxes. 143,400 Income taxes expense 43,890 Net income $ 99,510