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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, 2017 and 2016
2017 2016
Assets
Cash $ 87,500 $ 44,000
Accounts receivable, net 65,000 51,000
Inventory 63,800 86,500
Prepaid expenses 4,400 5,400
Total current assets 220,700 186,900
Equipment 124,000 115,000
Accum. depreciationEquipment (27,000 ) (9,000 )
Total assets $ 317,700 $ 292,900
Liabilities and Equity
Accounts payable $ 25,000 $ 30,000
Wages payable 6,000 15,000
Income taxes payable 3,400 3,800
Total current liabilities 34,400 48,800
Notes payable (long term) 30,000 60,000
Total liabilities 64,400 108,800
Equity
Common stock, $5 par value 220,000 160,000
Retained earnings 33,300 24,100
Total liabilities and equity $ 317,700 $ 292,900

IKIBAN INC. Income Statement For Year Ended June 30, 2017
Sales $ 678,000
Cost of goods sold 411,000
Gross profit 267,000
Operating expenses
Depreciation expense $ 58,600
Other expenses 67,000
Total operating expenses 125,600
141,400
Other gains (losses)
Gain on sale of equipment 2,000
Income before taxes 143,400
Income taxes expense 43,890
Net income $ 99,510

Additional Information

A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash.

The only changes affecting retained earnings are net income and cash dividends paid.

New equipment is acquired for $57,600 cash.

Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 gain.

Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.

All purchases and sales of inventory are on credit.

equired:

(1) Prepare a statement of cash flows for the year ended June 30, 2017, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

2. Compute the company's cash flow on total assets ratio for its fiscal year 2017.

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