Exercise 12-12 (Algo) Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2021. Cash Flow on Total Assets Ratio Choose Numerator: 1 Choose Denominator: = Cash Flow on Total Assets Ratio = Cash flow on total assets ratio = 0 Financing cash flows Investing cash flows Operating cash flows Sales Cost of goods sold Gross profit IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 708,000 417,000 291,000 73,000 64,600 153,400 2,600 156,000 44,490 $ 111,510 Additional Information a. A $30,000 notes 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 $63,600 cash. d. Received cash for the sale of equipment that had cost $54,600, yielding a $2,600 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. At June 30 Assets IKIBAN INCORPORATED Comparative Balance Sheets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated 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 2021 2020 $ 103,900 74,000 69,800 $ 50,000 57,000 95,500 5,000 6,600 252,700 209,100 130,000 (30,000) $ 352,700 $ 31,000 6,600 121,000 (12,000) $ 318,100 $ 39,000 16,200 4,000 5,000 41,600 60,200 36,000 66,000 77,600 126,200 232,000 166,000 43,100 25,900 $ 352,700 $ 318,100