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 Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity $ 97,300 90,500 80,800 16,100 274,700 141,000 (35,500) $380,200 $ 61,000 68,000 112,000 8,800 249,800 132,000 (17,500) $364,300 $ 42,000 7,700 5.100 54,800 47,000 101,800 $ 55,500 18,400 7,200 81,100 77,000 158, 100 47,000 101,800 77,000 158,100 Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 254,000 24,400 $380,200 177,000 29, 200 $364,300 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $75,600 Other expenses 84,000 Total operating expenses $763,000 428,000 335,000 159, 600 175,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 13,700 179, 100 45,590 $133,510 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 $74,600 cash. d. Received cash for the sale of equipment that had cost $65,600, yielding a $3,700 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. ....! 444 Required information (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2019. (Amounts to be dec be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities Prey 1 2 of 2 !!! Next > 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 11 1