Required Information Use the following information for the Exercises below. (The following information applies to the questions displayed below.) of 2 The following financial statements and additional Information are reported. 2017 ook Hint IKIBAN INC. Comparative Balance Sheets June 30, 2018 and 2017 2018 Assets Cash $ 87,500 Accounts receivable, net 65,000 Inventory 63,800 Prepaid expenses 4,400 Total current assets 220,700 Equipment 124,000 Accum. depreciation-Equipment (27,000) Total assets $317,700 Liabilities and Equity Accounts payable $ 25,000 Wages payable 6,000 Income taxes payable 3,400 Total current liabilities 34,400 Notes payable (long term) 30,000 Total liabilities 64,400 Equity Common stock, $5 par value 220,000 Retained earnings 33,300 Total liabilities and equity $317,700 $ 44,000 51,000 86,500 5,400 186,900 115,000 (9,000) $292,900 Print Terences $ 30,000 15,000 3,800 48,800 60,000 108,800 160,000 24,100 $292,900 IKIBAN INC. Income Statement For Year Ended June 30, 2018 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 Income taxes expense 43.890 Net income $ 99,510 1 143,400 099 Sze Additional Information . 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 pald. c. New equipment is acquired for $57,600 cash. d. Received cash for the sale of equipment that had cost $48,600, ylelding a $2,000 gain e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement 1. All purchases and sales of Inventory are on credit. Exercise 12-11 Indirect: Preparing statement of cash flows (part 2) LO P1, P2, P3, A1 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2018. Choose Numerator: Cash Flow on Total Assets Ratio Choose Denominator: Cash Flow on Total Assets Ratio Cash flow on total assets ratio