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Check for Exercise 16-11 Indirect Preparing statement of cash flows (9123 The following financial statements and additional information are reported. (1) Prepare a statement of

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Check for Exercise 16-11 Indirect Preparing statement of cash flows (9123 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 asseta ratio for fiscal year 2019. KIBAN INC IKIBAN INC Comparative Balance Sheets Income Statement For Year Ended June 30, 2019 At Jonego 2019 2018 Assets Sales $678,000 387500 34.000 Cost of goods sold 1.411,000 Accounts receivable.net 65.000 51.000 Gross profit 267,000 Inventory 63.800 36,500 Operating expenses Prepaid expenses 1-100 509 Depreciation expense 858,600 Total current assets 20,700 186.900 Other expenses 67.000 Equipment 124.000 115.000 Total operating expenses 125.600 Aceum. depreciation-Equipment a,000) 6.000) 141,400 Total assets $12.700 3200,000 Other gains (losses) Liabilities and Equity Accounts payable Gain on sale of equipment $ 25.000 30,000 2.000 Wages payable 6,000 15,000 Income before taxes 143.400 Income taxes payable 00 Income taxas expense 43.890 Total current liabilities 34.400 48,800 Net income $_99.510 Notes payable (long term 30.000 60,000 Total liabilities 64400 108,800 Equity Common stock. Ss par value 220,000 160,000 Retained earning 38300 24.100 Total liabilities and equity 5176700 3892.900 800 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 $57,600 cash d. Received cash for the sale of equipment that had cost $48,600 vielding a $2.000 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

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