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The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2015 and 2014 2015 2014 Assets Cash $ 99,200

The following financial statements and additional information are reported.
IKIBAN INC. Comparative Balance Sheets June 30, 2015 and 2014
2015 2014
Assets
Cash $ 99,200 $ 62,100
Accounts receivable, net 69,400 51,800
Inventory 66,500 96,700
Prepaid expenses 4,400 6,100
Total current assets 239,500 216,700
Equipment 131,400 115,000
Accum. depreciationEquipment (28,600 ) (10,400 )

Total assets $ 342,300 $ 321,300

Liabilities and Equity
Accounts payable $ 26,500 $ 32,900
Wages payable 7,600 16,300
Income taxes payable 2,900 4,200
Total current liabilities 37,000 53,400
Notes payable (long term) 47,000 74,000
Total liabilities 84,000 127,400
Equity
Common stock, $5 par value 233,000 186,000
Retained earnings 25,300 7,900

Total liabilities and equity $ 342,300 $ 321,300

IKIBAN INC. Income Statement For Year Ended June 30, 2015
Sales $ 675,000
Cost of goods sold 411,000
Gross profit 264,000
Operating expenses
Depreciation expense $ 52,000
Other expenses 66,500
Total operating expenses 118,500
145,500
Other gains (losses)
Gain on sale of equipment 2,400
Income before taxes 147,900
Income taxes expense 59,160
Net income $ 88,740

Additional Information

a. A $27,000 note payable is retired at its $27,000 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 $65,200 cash.
d. Received cash for the sale of equipment that had cost $48,800, 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.

(1)

Prepare a statement of cash flows for the year ended June 30, 2015, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

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(2)

Compute the company's cash flow on total assets ratio for its fiscal year 2015.

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Required: (1) Prepare a statement of cash flows for the year ended June 30, 2015, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2015 Cash flows from operating activities Net income 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 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

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