Required Information Exercise 12-11 Indirect: Preparing statement of cash flows LO P1, P2, P3, A1 The folowing infamation apoles to the questions olsplayed below] The following financial statements snd addtional Information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2817 and 2816 2817 2816 Assets $ 46,000 Cash $186,300 Accounts receivable, net 68.800 53,080 Inventory Prepaid expenses 65.see 89,see 4,688 5,888 Total current assets 244,708 194,300 Equipment 126,eea 117,e8e (10.000) (28.000) Accum. depreciation-Equipment $342,708 $381,380 Total assets Liabilities and Equity Accounts payable ages payable $33,00e $ 27,8e8 6,200 3,608 15,400 4,288 payable I tax Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity 36,8e8 52,68e 32.000 62,eae 114,6 68.800 224.000 162.000 49.900 24,700 $301,30e $342,788 IKIBAN IN Income Staterent For Year Ended June 38, 2817 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses $688.000 413,00e 275,000 $60.600 69.800 Total operating xpenses 129,608 145,400 Other gains (losses) Gain on sale of equipment Income before taxes 2,208 147,6e Incone taxes expense 44,e98 $183,510 Net incore Addtional Informstion a. A$30,000 nate paysble la retired at ts $30,000 carrying (book) value in exchange for cash. b. The anly changes affecting retained earnings are net income and cash dvicdends pald. C. New equlpment is scquired for $59.600 cach d. Receved cash for the sale of equipment that had cost $50,600, ylelding a $2,200 gain. e. Prepaid Expenses and Wages Payeble relate to Other Expenses on the Income ststement. f. All purchsses and sales of Inventory sree on credit xerclse 12-11 Part 2 Compute the company's caah flow on total essets ratio for Its fiscal year 2017. Carh Flow on Tatal Apcote Ratia Chooce Denominator: Average total asscts 322,000 hooce Numerator Cash Flow on Total Ascats Ratio- Operating cash fows Cash flow on total asects ratio