Exercise 16-12 (Static) 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. 2020 $ 44,000 51,000 86,500 5,400 186,900 115,000 (9,000) IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 Assets Cash $ 87,500 Accounts receivable, net 65,000 Inventory 63,800 Prepaid expenses 4,400 Total current assets 220,700 Equipment 124,000 Accumulated depreciation- (27,000) Equipment $ Total assets 317,700 Liabilities and Equity Accounts payable $ 25,000 Wages payable 6,000 Income taxes payable 3,400 Total current liabilities 34,400 Notes payable (long term) 30,000 Total liabilities 64,400 Equity Common stock, $5 par value 220,000 Retained earnings 33,300 Total liabilities and equity 317,700 $ 292,900 $ 30,000 15,000 3,800 48,800 60,000 108,800 160,000 24,100 292,900 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales $ 678,000 Cost of goods sold 411,000 Gross profit 267,000 Operating expenses (excluding 67,000 depreciation) Depreciation expense 58,600 141,400 Other gains (losses) Gain on sale of equipment 2,000 Income before taxes 143, 400 Income taxes expense 43,890 Net income $ 99,510 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 $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 Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit. Exercise 16-12 (Static) 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: / Choose Denominator: = Cash Flow on Total Assets Ratio / Cash flow on total assets ratio 1 0