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Required information [The following information applies to the questions displayed below.] The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets

Required information

[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 2018
Assets
Cash $ 95,500 $ 64,000
Accounts receivable, net 95,000 71,000
Inventory 83,800 116,500
Prepaid expenses 6,400 9,400
Total current assets 280,700 260,900
Equipment 144,000 135,000
Accum. depreciationEquipment (37,000 ) (19,000 )
Total assets $ 387,700 $ 376,900
Liabilities and Equity
Accounts payable $ 45,000 $ 60,000
Wages payable 8,000 19,000
Income taxes payable 5,400 7,800
Total current liabilities 58,400 86,800
Notes payable (long term) 50,000 80,000
Total liabilities 108,400 166,800
Equity
Common stock, $5 par value 260,000 180,000
Retained earnings 19,300 30,100
Total liabilities and equity $ 387,700 $ 376,900

IKIBAN INC. Income Statement For Year Ended June 30, 2019
Sales $ 778,000
Cost of goods sold 431,000
Gross profit 347,000
Operating expenses
Depreciation expense $ 78,600
Other expenses 87,000
Total operating expenses 165,600
181,400
Other gains (losses)
Gain on sale of equipment 4,000
Income before taxes 185,400
Income taxes expense 45,890
Net income $ 139,510

Additional Information

  1. A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash.
  2. The only changes affecting retained earnings are net income and cash dividends paid.
  3. New equipment is acquired for $77,600 cash.
  4. Received cash for the sale of equipment that had cost $68,600, yielding a $4,000 gain.
  5. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
  6. All purchases and sales of inventory are on credit.image text in transcribed
(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

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