Exercise 12-11 Indirect: Preparing statement of cash flows LO P2, P3, A1 (The following information applies to the questions displayed below.) The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2010 and 2018 2019 2018 $ 87,500 65.000 63,800 4,400 228,700 124,000 (27,000) $ 317, 789 $ 44,000 51.000 86. See 5.400 186.900 115.000 (9, 000) $ 292,900 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accun. depreciation Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, 35 par value Retained earnings Total liabilities and equity $ 25.000 6,000 30,000 15,000 3. BDO 34,488 30,000 64,400 60,000 108,00 220,000 33, 309 317,700 160,00 24, 100 $ 292, 900 TKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 58, 600 Other expenses 67,600 Total operating expenses $ 678, 80e 411.000 267. 125,600 131,00 Other gains (losses) Gain on sale of equipment Incone before taxes Income taxes expense Net income 14.40 43.89 99,510 $ 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. yielding 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. Exercise 12-11 Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2019. Choose Numerator: Cash Flow on Total Assets Ratio I Choose Denominator: = Cash Flow on Total Assets Ratio Cash flow on total assets ratio