GECKO INC. Comparative Balance Sheets June 30, 2011 and 2010 2011 2010 Assets Cash $ 117,900 $ 64,000 Accounts receivable, net 69,600 51,800 Inventory 66,400 96,800 Prepaid expenses 5,400 4,300 Equipment 121,800 111,000 Accum. depreciationEquipment (28,500 ) (10,400 ) Total assets $ 352,600 $ 317,500 Liabilities and Equity Accounts payable $ 26,100 $ 32,100 Wages payable 7,800 16,500 Income taxes payable 2,500 4,000 Notes payable (long term) 54,000 76,000 Common stock, $5 par value 237,000 181,000 Retained earnings 25,200 7,900 Total liabilities and equity $ 352,600 $ 317,500 GECKO INC. Income Statement For Year Ended June 30, 2011 Sales $ 674,000 Cost of goods sold 405,000 Gross profit 269,000 Operating expenses Depreciation expense $ 58,000 Other expenses 66,300 Total operating expenses 124,300 144,700 Other gains (losses) Gain on sale of equipment 2,100 Income before taxes 146,800 Income taxes expense 58,720 Net income $ 88,080 Additional Information a. A $22,000 note payable is retired at its $22,000 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 $59,400 cash. d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,100 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of merchandise inventory are on credit. references Section Break Exercise 16-10 Preparation of statement of cash flows (indirect) L.O. P1 3. value: 1 points Exercise 16-10 Part 1 1. Prepare a statement of cash flows for the year ended June 30, 2011, using the indirect method. (Amounts to be deducted should be indicated with a minus sign. Omit the "$" sign in your response.) GECKO, INC. Statement of Cash Flows For Year Ended June 30, 2011 Cash flows from operating activities $ Adjustments to reconcile net income to net cash provided by operating activities Net cash by operating activities $ Cash flows from investing activities Net cash in investing activities Cash flows from financing activities Net cash in financing activities $ Cash balance at beginning of year Cash balance at end of year $ eBook LinkView Hint #1references Worksheet Difficulty: Hard Exercise 16-10 Part 1 Learning Objective: 16-P1 Prepare a statement of cash flows. 4. value: 1 points Exercise 16-10 Part 2 2. Compute the company's cash flow on total assets ratio for its fiscal year 2011. (Round your answer to 1 decimal place. Omit the "%" sign in your response.) Cash flow on total assets ratio %