reported. The following financial statements and additional information are Exercise 16-11 Indirect: Preparing statement of cash flows IKIBAN INC. P1 P2 P3 A1 Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash $ 87,500 $ 44,000 Accounts receivable, net 65,000 51,000 Inventory... 63,800 86,500 Prepaid expenses 4.400 5,400 IKIBAN INC. Total current assets 220,700 Income Statement 186,900 For Year Ended June 30, 2017 Equipment.. 124,000 115,000 Accum. depreciation-Equipment. (27,000) (9,000) $678,000 Sales.. Total assets. . $317,700 $292,900 411,000 Cost of goods sold Liabilities and Equity Gross profit... 267,000 $ 30,000 Accounts payable. $ 25,000 Operating expenses Depreciation expense Wages payable. 6,000 15,000 $58,600 Income taxes payable 3,400 3,800 Other expenses 67,000 48,800 Total current liabilities 34,400 Total operating expenses.. 125,600 60,000 Notes payable (long term) Total liabilities. .. 30,000 141,400 108,800 64,400 Other gains (losses) Gain on sale of equipment 2,000 Equity Income before taxes.. 160,000 143,400 Common stock, $5 par value. 220,000 Income taxes expense 24,100 43,890 33,300 Retained earnings Net income. $292,900 $ 99,510 $317,700 Total liabilities and equity. Additional Information A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. h. The only changes affecting retained earnings are net income and cash dividends paid. G. 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. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. f. All purchases and sales of inventory (1b) Cash paid for Check dividends, $90,310 (1d) Cash received from equip. sale, $10,000 e. are on credit. Required 1, Prepare a statement of cash flows for the year ended June 30, 2017, using the indirect method. 2. Compute the company's cash flow on total assets ratio for its fiscal year 2017