Exercise 16-11 Indirect: Preparing statement of cash flows LO P1, 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, 2017 and 2016 2017 Accounts receivable, net $ 87,500 65.000 63.800 4,400 220,700 124,000 27.0992 $317.700 44,000 51,000 86.500 5.400 186,900 115,000 12,000) $292,900 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 IKIRAN INC. Income Statement For Year Ended June 30, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $58,600 Other expenses 67,000 Total operating expenses $678,000 411,000 267,000 125.600 141.400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net Income 2,000 143,400 43.890 $ 99,510 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 $57,600 cash. d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 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. Required: (1) Prepare a statement of cash flows for the year ended June 30, 2017 using the indirect method (Amounts to be be indicated with a minus sign.) IBAN, INC. Statement of Cash Flowe indirect Method For Year Ended June 30, 2017 Cash flows from investir Cash flows from financing activities Not increase (decrease in cash Cash balance at prior year-end Cash balance at current year-end Exercise 16-11 Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2017, Choose Numerator: Cash Flow on Total Assets Ratio Choose Denominator: Cash Flow on Total Assets Ratio - Cash flow on total assets ratio