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 Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value 2021 2020 $ 92,500 $ 69,000 102,500 88,800 76,000 124,000 6,900 10,400 290,700 149,000 (39,500) $ 400,200 $ 50,000 8,500 5,900 64,400 279,400 140,000 (21,500) $ 397,900 $ 67,500 20,000 8,800 96,300 55,000 85,000 119,400 181,300 270,000 185,000 10,800 31,600 $ 400,200 $ 397,900 Retained earnings Total liabilities and equity IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold 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 $ 803,000 436,000 367,000 92,000 83,600 191,400 4,500 195,900 46,390 $ 149,510 Additional Information 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 $82,600 cash. d. Received cash for the sale of equipment that had cost $73,600, yielding a $4,500 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the Income statement. 1. All purchases and sales of Inventory are on credit. Required: (1) Prepare a statement of cash flows using the Indirect method for the year ended June 30, 2021. (Amounts to be deducted shoul be Indicated with a minus sign.) Mathcad June 20, 2021 Cash flows from operating activities Net income Adjustments to reconcile nel income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities $ 0 Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end 0 0 $ 0 S 0 9 Prev 1 2 of 2 Next > Exercise 12-12 (Algo) Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2021. Cash Flow on Total Assets Ratio Choose Numerator: I Choose Denominator: 1 Cash Flow on Total Assets Ratio Cash flow on total assets ratio