Required information Exercise 12-11 Indirect: Preparing statement of cash flows LO P2, P3, A1 (The following information applies to the questions displayed below.) The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $104,500 Accounts receivable, net 72,500 Inventory 68,800 Prepaid expenses 4,900 Total current assets 250,700 Equipment 129.000 Accum. depreciation-Equipment 29,500 Total assets $350,200 Liabilities and Equity Accounts payable $ 30,000 Wages payable 6,500 2000 Income taxes payable Total current liabilities 40,400 35,000 Notes payable long term) Total liabilities 75,400 Equity 230,000 Common stock, $5 par value 44,800 Retained earnings $350,200 Total liabilities and equity $ 49,000 56,000 94.000 6,400 205.400 120.000 (11,500) $313,900 $37,500 16,000 ,100 58,00 65,000 123,300 165,000 25.600 $313.900 IKIRAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold $70,000 416,000 2 of 2 Next > Help IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $63,600 Other expenses 72.000 Total operating expenses $ 703,000 416,000 287,000 135,600 151,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 2,500 153,900 44,390 $ 109,510 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 pald. c. New equipment is acquired for $62,600 cash. d. Received cash for the sale of equipment that had cost $53,600, yielding a $2,500 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement f. All purchases and sales of inventory are on credit. Exercise 12-11 Part 1 Required: (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2019. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Indirect Method 2 of 2 Next > Help Exercise 12-11 Part 1 Required: (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2019. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities Cash flows from investing activities 2 of 2 Next > Changes in current operating assets and liabilities Cash flows from investing activities Cash flows from financing activities 0 Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end SO 12 of 2 Next > " purchJCs Un sales Unventory are on credit. Exercise 12-11 Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2019. Choose Numerator: Cash Flow on Total Assets Ratio I Choose Denominator: = Cash Flow on Total Assets Ratio Cash flow on total assets ratio 902