IKIBAN INC. Comparative Balance Sheets June 30, 2013 and 2012
	2013				2012
Assets
Cash	$	87,500			$	44,000
Accounts receivable, net		65,000				51,000
Inventory		63,800				86,500
Prepaid expenses		4,400				5,400
Equipment		124,000				115,000
Accum. depreciationEquipment		(27,000	)			(9,000	)
Total assets	$	317,700			$	292,900
Liabilities and Equity
Accounts payable	$	25,000			$	30,000
Wages payable		6,000				15,000
Income taxes payable		3,400				3,800
Notes payable (long term)		30,000				60,000
Common stock, $5 par value		220,000				160,000
Retained earnings		33,300				24,100
Total liabilities and equity	$	317,700			$	292,900

IKIBAN INC. Income Statement For Year Ended June 30, 2013
Sales				$	678,000
Cost of goods sold					411,000
Gross profit					267,000
Operating expenses
Depreciation expense	$	58,600
Other expenses		67,000
Total operating expenses					125,600
					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 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 merchandise inventory are on credit.

IKIBAN, INC.
Statement of Cash Flows (Indirect Method)
For Year Ended June 30, 2013
Cash flows from operating activities
Net income
Adjustments to reconcile net income to net cash provided by operating activities
Increase in accounts receivable
Decrease in merchandise inventory
Decrease in prepaid expenses
Decrease in accounts payable
Decrease in wages payable
Decrease in income taxes payable
Depreciation expense
Gain on sale of plant assets
Net cash provided by operating activities
Cash flows from investing activities
Cash received from sale of equipment
Cash paid for equipment
Net cash used in investing activities
Cash flows from financing activities
Cash received from stock issuance
Cash paid to retire notes
Cash paid for dividends	---
Net cash used in financing activities
Net increase (decrease) in cash
Cash balance at prior year-end
Cash balance at current year-end		----

(2)	Compute the company's cash flow on total assets ratio for its fiscal year 2013.

Cash Flow on Total Assets Ratio
Choose Numerator:	/	Choose Denominator:	=	Cash Flow on Total Assets Ratio
Financing cash flows	/	Average current liabilities	=	Cash Flow on Total Assets Ratio
	/		=	0

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