The following financial statements and additional information are reported. 2020 IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2021 Assets Cash $ 93,700 Accounts receivable, net 99,500 Inventory 86,800 Prepaid expenses 6,700 Total current assets 286,700 Equipment 147,000 Accumulated depreciation-Equipment (38,500) Total assets $ 395,200 Liabilities and Equity Accounts payable $ 48,000 Wages payable 8,300 Income taxes payable 5,700 Total current liabilities 62,000 Notes payable (long term) 53,000 Total liabilities 115,000 Equity Common stock, $5 par value 266,000 Retained earnings 14,200 Total liabilities and equity $ 395,200 $ 67,000 74,000 121,000 10,000 272,000 138,000 (20,500) $ 389,500 $ 64,500 19,600 8,400 92,500 83,000 175,500 183,000 31,000 $ 389,500 IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense $ 793,000 434,000 359,000 90,000 81,600 187,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 4,300 191,700 46,190 $ 145,510 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 $80,600 cash. d. Received cash for the sale of equipment that had cost $71,600. yielding a $4,300 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. Answer is not complete. Choose Numerator: Cash Flow on Total Assets Ratio Choose Denominator: Average total assets Operating cash flows = Cash Flow on Total Assets Ratio Cash flow on total assets ratio 0 11