Exercise 12-11 Indirect: Preparing statement of cash flows LO P1, P2, P3, A1 The following information applies to the questions displayed below The following financial statements and additional information are reported. IKBAN, INC Comparative Balance Sheets June 30, 2017 and 2016 2817 2816 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets 94,900 65,880 72,800 84,800 118,80e 9.600 9 788264,688 96,500 282,780 145,88 136,880 (37,500) (19,580) $398,200 $381,100 Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $$ par value Retained earnings Total liabilities and equity s 46,000 61,50e 19,280 8,000 88,780 8,100 5,50898 59,608 110,60 169,7ee 262,000 181,0e8 30,400 5390,200 $381,188 17.600 IKIBAN INC. Incone Statement For Year Ended June 3e, 2817 $783,000 432,800 351,808 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $79,600 88,888 Other expenses Total operating expenses 167,600 183,400 Other gains (losses) Gain on sale of equipment Income before taxes Incone taxes expense Net income 4,100 187,500 45,990 $141,510 Additional Information o. 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 pald. c. New equipment is acquired for $78,600 cash. K Erey 13 Income Statement For Yea 5783,e08 432,00e 351,888 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense 579,680 88,800 Other expenses Total operating expenses 167,688 183,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 4,100 187,500 45,990 141,51 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 palt. c. New equipment is acquired for $78,600 cash. d. Recelved cash for the sale of equipment that had cost $69,600, ylelding a $4,100 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 Exercise 12-11 Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2017 Cash Flow on Total Assets Rat Cash flow on total assets ratio Choose Numerator: Choose Prey