The following financial statements and additional Information are reported. At June 30 Assets IKIBAN INCORPORATED Comparative Balance Sheets 2021 2828 Cash Inventory Accounts receivable, net Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment 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 Sales Cost of goods sold $ 104,500 72,500 $ 49,000 55,000 68,800 94,000 4,900 6,400 250,700 205,400 IKIBAN INCORPORATED Income Statement $ 350,200 129,000 (29,580) 6,500 120,000 (11,500) $ 313,900 $ 37,500 16,000 $ 30,000 3,900 4,880 40,400 58,300 35,000 65,000 75,480 123,300 230,000 165,000 44,800 $ 350,200 25,600 $313,900 For Year Ended June 30, 2021 $ 703,000 416,000 287,000 72,000 63,600 151,400 2,500 153,900 44,390 $ 109,510 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 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 pald c. New equipment is acquired for $62,600 cash. d. Received cash for the sale of equipment that had cost $53,600, yielding a $2,500 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 Required: (1) Prepare a statement of cash flows using the Indirect method for the year ended June 30, 2021. Note: Amounts to be deducted should be Indicated with a minus sign. Cash flows from operating activities IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2021 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities $ o Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ $ The following financial statements and additional Information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment 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 IKIBAN INCORPORATED Income Statement 2821 2828 $ 104,500 72,500 $ 49,000 56,000 68,800 94,000 4,988 5,400 258,700 205,400 129,000 (29,588) 120,000 (11,500) $ 358,200 $ 30,000 6,500 3,900 $ 313,900 $ 37,500 16,000 4,800 40,400 58,300 35,000 65,000 75,400 123,300 230,000 165,000 44,800 25,600 $ 350,200 $313,900 Sales Cost of goods sold Gross profit For Year Ended June 30, 2021) $ 703,000 416,000 287,000 72,000 63,600 151,400 Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information 2,500 153,900 44,390 $ 109,510 e. 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 $62,600 cash d. Received cash for the sale of equipment that had cost $53,600, yielding a $2.500 gain e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement 1. All purchases and sales of inventory are on credit Exercise 12-12 (Algo) Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2021. Cash Flow on Total Assets Ratio Choose Numerator: 1 Choose Denominator: 1 1 Cash Flow on Total Assets Ratio Cash flow on total assets ratio