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Required information Exercise 16-12 (Algo) Indirect: Preparing statement of cash flows LO P2, P3, A1 [The following information applies to the questions displayed below.) The following financial statements and additional information are reported. 2020 IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 Assets Cash $ 94,300 Accounts receivable, net 98,000 Inventory 85,800 Prepaid expenses 6,600 Total current assets 284,700 Equipment 146,000 Accumulated depreciation-Equipment (38,000) Total assets $ 392,700 Liabilities and Equity Accounts payable $ 47,000 Wages payable 8,200 Income taxes payable 5,600 Total current liabilities 60,800 Notes payable (long term) 52,000 Total liabilities 112,800 Equity Common stock, $5 par value 264,000 Retained earnings 15,900 Total liabilities and equity $ 392,700 $ 66,000 73,000 119,500 9,800 268,300 137,000 (20,000) $ 385, 300 $ 63,000 19,400 8,200 90,600 82,000 172,600 182,000 30,700 $ 385,300 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense $ 788,000 433,000 355,000 89,000 80,600 185,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 4,200 189,600 46,090 $ 143,510 Additional Information a. A $30,000 notes 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 $79,600 cash. d. Received cash for the sale of equipment that had cost $70,600, yielding a $4,200 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit. Exercise 16-12 (Algo) Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2021. X Answer is not complete. Choose Numerator: Cash Flow on Total Assets Ratio Choose Denominator: Average total assets Cash Flow on Total Assets Ratio Operating cash flows / Cash flow on total assets ratio / 0