The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 Assets Cash $ 105,700 $ 47,000 Accounts receivable, net 69,500 54,000 Inventory 66,800 91,000 Prepaid expenses 4,700 6,000 Total current assets 246,700 198,000 Equipment 127,000 118,000 Accum. depreciationEquipment (28,500 ) (10,500 ) Total assets $ 345,200 $ 305,500 Liabilities and Equity Accounts payable $ 28,000 $ 34,500 Wages payable 6,300 15,600 Income taxes payable 3,700 4,400 Total current liabilities 38,000 54,500 Notes payable (long term) 33,000 63,000 Total liabilities 71,000 117,500 Equity Common stock, $5 par value 226,000 163,000 Retained earnings 48,200 25,000 Total liabilities and equity $ 345,200 $ 305,500 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales $ 693,000 Cost of goods sold 414,000 Gross profit 279,000 Operating expenses Depreciation expense $ 61,600 Other expenses 70,000 Total operating expenses 131,600 147,400 Other gains (losses) Gain on sale of equipment 2,300 Income before taxes 149,700 Income taxes expense 44,190 Net income $ 105,510 Additional Information A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. The only changes affecting retained earnings are net income and cash dividends paid. New equipment is acquired for $60,600 cash. Received cash for the sale of equipment that had cost $51,600, yielding a $2,300 gain. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. 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, 2019. (Amounts to be deducted should be indicated with a minus sign.) Compute the companys cash flow on total assets ratio for its fiscal year 2019.

Additional Information

1. A $44,400 note payable is retired at its $44,400 carrying (book) value in exchange for cash.
2. The only changes affecting retained earnings are net income and cash dividends paid.
3. New equipment is acquired for $75,600 cash.
4. Received cash for the sale of equipment that had cost $66,600, yielding a $3,800 gain.
5. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
6. All purchases and sales of inventory are on credit.

Using the direct method, prepare the statement of cash flows for the year ended June 30, 2019. (Amounts to be deducted should be indicated with a minus sign.)