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. 2019 $ 58,000 65,000 107,500 8,200 238, 700 129,000 (16,000) $351,700 IKIBAN INC. Comparative Balance Sheets At June 30 2020 Assets Cash $ 99,100 Accounts receivable, net 86,000 Inventory 77,800 Prepaid expenses 5,800 Total current assets 268,700 Equipment 138,000 Accum. depreciation-Equipment (34,000) Total assets $ 372,700 Liabilities and Equity Accounts payable $ 39,000 Wages payable 7,400 Income taxes payable 4,800 Total current liabilities 51,200 Notes payable (long term) 44,000 Total liabilities 95,200 Equity Common stock, $5 par value 248,000 Retained earnings 29,500 Total liabilities and equity $ 372,700 $ 51,000 17,800 6,600 75,400 74,000 149,400 174,000 28,300 $ 351,700 IKIBAN INC. Income Statement For Year Ended June 30, 2020 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense $ 748,000 425,000 323,000 81,000 72,600 169,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 3,400 172,800 45,290 $ 127,510 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 $71,600 cash. d. Received cash for the sale of equipment that had cost $62,600, yielding a $3,400 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. = Choose Numerator: Operating cash flows Cash Flow on Total Assets Ratio 1 Choose Denominator: Cash Flow on Total Assets Ratio 1 Average total assets Cash flow on total assets ratio / 0