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 $ 92,500 $ 69,000 102,500 76,000 88,800 124,000 6,900 10,400 290,700 279,400 149,000 140,000 (39,500) (21,500) $400,200 $397,900 $ 50,000 8,500 5,900 64,400 55,000 119,400 $ 67,500 20,000 8,800 96,300 85,000 181,300 Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 119,400 181,300 279,000 10,800 $400,200 185,989 31,599 $397,999 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $83,600 Other expenses 92,000 Total operating expenses $803,000 436,000 367,000 175,600 191,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 4,500 195,900 46,390 Lure taxes Income taxes expense Net income Check 195,900 46,390 $149,510 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 $82,600 cash. d. Received cash for the sale of equipment that had cost $73,600, yielding a $4,500 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 rever 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 Cash Flow on Total Assets Ratio Choose Numerator: 1 Choose Denominator: Cash Flow on Total Assets Ratio Cash flow on total assets ratio 1 1