IKIBAN INCORPORATED Comparative Balance Sheets At June 30 Assets 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 2021 220 Equity Common stock, \$5 par value Retained earnings Total liabilities and equity \begin{tabular}{rr} 266,000 & 183,000 \\ 14,200 & 31,000 \\ \hline$395,200 & $389,500 \\ \hline \end{tabular} IKIBAN INCORPORATED Income Statement Sales Cost of goods sold Fon Year Ended June 30, 2021 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 $80,600 cash. d. Received cash for the sale of equipment that had cost $71,600, yielding a $4,300 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. Required: (1) Prepare a statement of cash flows using the indirect method for the year ended June 30,2021 . (Amounts be indicated with a minus sign.) (1) Required information Increase in accounts receivable Decrease in income taxes payable Decrease in inventory Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable Cash flows from investing activities Cash received from sale of equipment Cash flows from financing activities Cash received from stock issuance Cash paid for dividends Cash paid to retire notes Cash received from sale of equipment Cash flows from financing activities \begin{tabular}{|l|l|l|l|} \hline Cash received from stock issuance & & \\ \hline Cash paid for dividends & & \\ \hline Cash paid to retire notes & & \\ \hline & Net increase (decrease) in cash & \\ \hline Cash balance at prior year-end & & \\ \hline Cash balance at current year-end & & \\ \hline \end{tabular} c. New equipment is acquired for $80,600 cash. d. Recelved cash for the sale of equipment that had cost $71,600, yielding a $4,300 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income stateme f. All purchases and sales of inventory are on credit. Exercise 1212 (Algo) Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2021