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, 2019 and 2018 2019 2018 Assets Cash $ 99, 100 $ 58,000 Accounts receivable, net 86,000 65,000 Inventory 77,800 107,500 Prepaid expenses 5,800 8,200 Total current assets 268,700 238,700 Equipment 138,000 129,000 Accum. depreciation-Equipment (34,800) (16,800) Total assets $372,790 $351,700 Liabilities and Equity Accounts payable $ 39,000 $ 51,000 Wages payable 7,400 17,800 Income taxes payable 4,880 6,600 Total current liabilities 51,200 75,400 Notes payable long term) 44,000 74,000 Total liabilities 95,280 149,400 Equity Common stock, $5 par value 248,880 174,000 29,500 Retained earnings 28,300 Total liabilities and equity $372,700 $351,789 $748,000 425,000 323,000 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $72,600 other expenses 81,000 Total operating expenses other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 153,600 169,400 3.480 172,800 45,290 $127,510 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 $71,600 cash. d. Received cash for the sale of equipment that had cost $62,600. yielding a $3,400 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 Choose Denominator: Cash Flow on Total Assets Ratio Cash flow on total assets ratio /