Exercise 12-12 (Algo) 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 At June 30 Assets 2020 2019 Cash $ 97,900 $ 60,000 Accounts receivable, net 89,000 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 Common stock, $5 par value Retained earnings Total liabilities and equity 79,800 67,000 110,500 6,000 8,600 272,700 246,100 140,000 131,000 (35,000) (17,000) $377,700 $360,100 $ 41,000 $ 54,000 7,600 18,200 5,000 7,000 53,600 79,200 46,000 76,000 99,600 155,200 252,000 176,000 26,100 $377,700 28,900 $360,100 IKIBAN INC. Income Statement For Year Ended June 30, 2020 Sales. Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 758,000 427,000 331,000 83,000 74,600 173,400 3,600 177,000 45,490 $ 131,510 Other gains (losses) Gain on sale of equipment Income before taxes. Income taxes expense Net income 3,600 177,000 45,490 $ 131,510 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 $73,600 cash. d. Received cash for the sale of equipment that had cost $64,600, yielding a $3,600 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit. Exercise 12-12 (Algo) Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2020. Choose Numerator: Cash Flow on Total Assets Ratio Choose Denominator: Cash Flow on Total Assets Ratio ' Cash flow on total assets ratio 0