The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 2020 $ 99,100 $ 58,000 86,000 77,800 65,000 107,500 5,800 8,200 268,700 238,700 138,000 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 Sales Cost of goods sold IKIBAN INCORPORATED Income Statement $ 372,700 $ 39,000 7,400 (34,000) 129,000 (16,000) $ 351,700 $ 51,000 17,800 4,800 6,600 51,200 75,400 44,000 74,000 95,200 149,400 248,000 174,000 29,500 28,300 $ 372,700 $ 351,700 For Year Ended June 30, 2021 $ 748,000 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 425,000 323,000 81,000 72,600 169,400 3,400 172,800 45,290 $127,510 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 $71,600 cash. d. Received cash for the sale of equipment that had cost $62,600, yielding a $3,400 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 (Amounts to be deducted should be indicated with a minus sign.) Cash flows from operating activities Net income 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 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 $ 127,510 72,600 (3,400) (21,000) 29,700 2,400 Decrease in accounts payable (12,000) Decrease in wages payable (10,400) Decrease in income taxes payable (1,800) 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 183,610 0 Required information Changes in current operaung assets and faces Increase in accounts receivable (21,000) Decrease in inventory 29,700 Decrease in prepaid expenses 2,400 Decrease in accounts payable (12,000) Decrease in wages payable (10,400) Decrease in income taxes payable (1,800) 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 $ 183,610 0 $ 183,610 $ 183,610 of 2 ULI ( Gain on sale of equipment Income before taxes Income taxes expense Net income Additional Information 3,400 172,800 45,290 $127,510 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 $71,600 cash. d. Received cash for the sale of equipment that had cost $62,600, yielding a $3,400 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 nces Exercise 16-12 (Algo) Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2021 Choose Numerator: Cash Flow on Total Assets Ratio Choose Denominator: Cash Flow on Total Assets Ratio Cash flow on total assets ratio 0