Chapter 16 Reporting the Statement of Cash Flows 601 W The following financial statements and additional information are reported. (1) Prepare a statement of Exercise 16-11 cash flows using the indirect method for the year ended June 30, 2019. (2) Compute the company's cash Indirect: Preparing Now on total assets ratio for fiscal year 2019. statement of cash flows IKIBAN INC A1 P2 P3 T Income Statement For Year Ended June 30, 2019 IKIBAN INC Comparative Balance Sheets Sales $678,000 At June 30 2019 2018 Cost of goods sold 411,000 Gross profit 267.000 Assets Operating expenses Cash $ 87,500 $ 44,000 Depreciation expense 558.600 Accounts receivable, net 65.000 51,000 67,000 Other expenses 63.800 Inventory 86,500 125.600 Total operating expenses Prepal espenses 4.400 5.400 Totalcinot assets 220,700 186,900 Bopment 124,000 115.000 Other gains losses 20N cum cepreciation--Equipment... 27.000 19.000) Gain on sale of equipment Total assets $317.700 $292.900 143400 Income before taxes. Income taxes expense 43,890 Liabilities and Equity $ 99,510 Net income Accounts payable $ 25,000 $ 30,000 Wages payable 6,000 15,000 Income taxes payable 3,400 3.800 Additional Information Total current abilities 34,400 48,800 a. A $30,000 note payable is retired at its $30,000 carrying (book) Notes payable long term 30,000 50.000 value in exchange for cash. Total liabilities. 64,400 108,800 b. The only changes affecting retained earnings are net income and cash dividends pald Equity New equipment is acquired for $57,600 cash. Common stock, 55 par value 220,000 160.000 33,300 24,100 d. Received cast for the sale of equipment that had cost $48,600 yield Retained earnings ing a $2.000 gain Total abilities and equity. $317,700 $292.900 e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement Check (15) Cash paid for dividends $90.310 L All purchases and sales of inventory are on credit c) Cash received from equo, sale, Sto000 er UC Exercise 16-12 To the following information to mare a statement of cash flows for the current year using the indirect method