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 Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment $105,100 71,000 67,800 4,800 248,700 128,000 (29,000) $347,700 $ 48,000 55,000 92,500 6,200 201,700 119,000 (11,000) $309,700 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 Retained earnings Total liabilities and equity $ 29,000 6,400 3,800 39,200 34,000 73,200 $ 36,000 15,800 4,600 56,400 64,000 120,400 228,000 46,500 $347,700 164,000 25,300 $309,700 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $62,600 Other expenses 71,000 Total operating expenses $698,000 415,000 283,000 133,600 149,400 Other gains (losses) Retained earnings 46,500 $347,700 25,300 $309,700 Total liabilities and equity IKIBAN INC. Income Statement $698,000 415,000 283,000 For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $62,600 Other expenses 71,000 Total operating expenses 133,600 149,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense 2,400 151,800 44,290 $107,510 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 $61,600 cash. d. Received cash for the sale of equipment that had cost $52,600, yielding a $2,400 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 2019. Cash Flow on Total Assets Ratio | Choose Denominator: Cash Flow on Total Assets Ratio Choose Numerator: Operating cash flows 1 Average total assets Cash flow on total assets ratio 1 =