Required information Exercise 12-12 (Algo) 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 INCORPORATED Comparative Balance Sheets At June 30 Assets Cash Accounts receivable, net Prepaid expenses 2020 2019 $ 93,100 $ 68,000 101,000 Inventory 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 Equity 87,800 75,000 122,500 6,800 10,200 288,700 275,700 148,000 (39,000) $ 397,700 $ 49,000 8,400 139,000 (21,000) $ 393,700 $ 66,000 19,800 5,800 8,600 63,200 94,400 54,000 84,000 117,200 178,400 Common stock, $5 par value 268,000 184,000 Retained earnings 12,500 31,300 Total liabilities and equity $ 397,700 $ 393,700 Equity Common stock, $5 par value Retained earnings. 268,000 12,500 184,000 31,300 $ 393,700 Total liabilities and equity $ 397,700 IKIBAN INCORPORATED Income Statement Sales Cost of goods sold. Gross profit For Year Ended June 30, 2020 $ 798,000 435,000 363,000 91,000 82,600 189,400 4,400 Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information 193,800 46,290 $ 147,510 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 $81,600 cash. d. Received cash for the sale of equipment that had cost $72,600, yielding a $4,400 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. income $ 147,510 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 $81,600 cash. d. Received cash for the sale of equipment that had cost $72,600, yielding a $4,400 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. Exercise 12-12 (Algo) Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2020. Cash Flow on Total Assets Ratio Choose Numerator: Choose Denominator: = Cash Flow on Total Assets Ratio = Cash flow on total assets ratio 0