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 Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity 2021 2020 $ 96,100 93,500 $ 63,000 82,800 70,000 115,000 6,300 9,200 278,700 143,000 (36,500) $ 385,200 $ 44,000 7,900 257,200 134,000 (18,500) $ 372,700 $ 58,500 18,800 Accounts payable Wages payable Income taxes payable 5,300 7,600 Total current liabilities 57,200 84,900 Notes payable (long term) 49,000 79,000 Total liabilities 106,200 163,900 Equity Common stock, $5 par value 258,000 179,000 Retained earnings 21,000 29,800 Total liabilities and equity $ 385,200 $ 372,700 Sales IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $ 773,000 Cost of goods sold 430,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information 343,000 86,000 77,600 179,400 3,900 183,300 45,790 $ 137,510 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 $76,600 cash. d. Received cash for the sale of equipment that had cost $67,600, yielding a $3,900 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 2021. Choose Numerator: Cash Flow on Total Assets Ratio Choose Denominator: => Cash Flow on Total Assets Ratio Cash flow on total assets ratio