Required information [The following information applies to the questions displayed below.] The following financial statements and additional information are reported. KI A INC. Comparative Balance Sheets June 30, 2018 and 2017 2018 2017 Assets $ 72,500 102,500 88,800 6,900 270,700 149,000 (39,500) $69,000 76,000 124,000 Cash Accounts receivable, net Inventory Prepaid expenses 10,400 279,400 140,000 (21,500) Total current assets Equipment Accum. depreciation-Equipment $380,200 $397,900 Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable $ 67,500 20,000 $50,000 8,500 5,900 64,400 55,000 119,400 8,800 96,300 85,000 181,300 Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings 270,000 185,000 9,200 31,600 Total liabilities and equity $380,200 $397,900 IKIBAN INC Income Statement For Year Ended June 30, 2018 $803,000 436,000 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense 367,000 $83,600 92,000 Other expenses Total operating expenses 175,600 191,400 Other gains (losses) Gain on sale of equipment 4,500 195,900 46,390 Income before taxes Income taxes expense $149,510 Net income 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 $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 Other Expenses on the income statement. f. All purchases and sales of inventory are on credit. (2) Compute the company's cash flow on total assets ratio for its fiscal year 2018. Cash Flow on Total Assets Ratio Choose Numerator: Choose Denominator: Cash Flow on Total Assets Ratio / Cash flow on total assets ratio / 0