The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets At June 30 2020 2019 Assets Cash $ 93,700 $ 67,000 Accounts receivable, net 99,500 Prepaid expenses Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable 86,800 74,000 121,000 6,700 10,000 286,700 272,000 147,000 (38,500) $ 395,200 $ 48,000 8,300 Income taxes payable Total current liabilities 5,700 138,000 (20,500) $ 389,500 $ 64,500 19,600 8,400 62 000 92,500 Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings 53,000 115,000 83,000 175,500 266,000 183,000 14,200 31,000 $ 395,200 $ 389,500 Total liabilities and equity IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2020 Sales Cost of goods sold Gross profit Depreciation expense Operating expenses (excluding depreciation) Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income $ 793,000 434,000 359,000 90,000 81,600 187,400 4,300 191,700 46,190 $ 145,510 Additional Information a. 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 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. Cash flows from operating activities Net income IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense Gain on sale of plant assets Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable Net cash provided by operating activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment Net cash used in investing activities $ 145,510 81,600 $ 227,110 Decrease in inventory Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable Net cash provided by operating activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment Net cash used in investing activities Cash flows from financing activities Cash received from stock issuance Cash paid to retire notes Cash paid for dividends Net cash used in financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end $ 227,110 0 0 $ 227,110 $ 227,110 Additional Information a. 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 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 12-12 (Algo) Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2020. Choose Numerator: / / Cash Flow on Total Assets Ratio Choose Denominator: Cash Flow on Total Assets Ratio Cash flow on total assets ratio 0