Exercise 12-11 Indirect: Preparing The following financial statements and additional information are reported. h. IKIBAN INC. statement of cash flows Comparative Balance Sheets P1 P2 P3 A1 Jine 30, 2017 and 2016 2017 2016 Assets Cash ..87,500 44,000 65,000 51,000 Accounts receivable, net , Inventory 63,800 86,500 Prepaid expenses 4.4005,400 220,700 186,900 IKIBAN INC Income Statement For Year Ended June 30, 2017 Total current asses 124,000 115,000 Sales (27,000) 19,000 $678,000 411000Total assets . $317700 $292900 Gross profit Liabilities and Equity 267,000 Operating expenses $58,600 15,000 6,000 Income taxes payable .. 3,4003,800 34,400 48,800 Total operating expenses 125,600 Total current liabilities 141.400 30,000 60,000 Other gains (losses 64,400 108,800 Gain on sale of equipmert 2,000 143,400 Equity Income taxes expense.. ..220,000 160,000 43,890 Retained Net income 33,30024,100 317,700 earnings Total liabilities and equity 99,510 Chapter 12 Reporting Cash Flows 573 Additional Information able is retired at its $30,000 carrying (book) value in exchange for cash. nly changes affecting retained earnings are net income and cash dividends paid b. The only changes at c. New equipment is acquired for $57.60) ca ived cash for the sale of equipment that had cost $48,600, yielding a $2,000 gain. nses and Wages Payable relate to Other Expenses on the income statement Check (1b) Cash paid for dividends, $90,310 e. Prepaid Expenses Wa t All purchases and sales of inventory are on credit. 1d) Cash received from equip. sale. $10,000 Required 1. Prepare a statement of cash flows for the year ended June 30, 2017, using the indirect method. 2. Compute the company's cash flow on total assets ratio for its fiscal year 2017 s in W IS