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The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash $ 79,700

The following financial statements and additional information are reported.

IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016
2017 2016
Assets
Cash $ 79,700 $ 57,000
Accounts receivable, net 84,500 64,000
Inventory 76,800 106,000
Prepaid expenses 5,700 8,000
Total current assets 246,700 235,000
Equipment 137,000 128,000
Accum. depreciationEquipment (33,500 ) (15,500 )
Total assets $ 350,200 $ 347,500
Liabilities and Equity
Accounts payable $ 38,000 $ 49,500
Wages payable 7,300 17,600
Income taxes payable 4,700 6,400
Total current liabilities 50,000 73,500
Notes payable (long term) 43,000 73,000
Total liabilities 93,000 146,500
Equity
Common stock, $5 par value 246,000 173,000
Retained earnings 11,200 28,000
Total liabilities and equity $ 350,200 $ 347,500

IKIBAN INC. Income Statement For Year Ended June 30, 2017
Sales $ 743,000
Cost of goods sold 424,000
Gross profit 319,000
Operating expenses
Depreciation expense $ 71,600
Other expenses 80,000
Total operating expenses 151,600
167,400
Other gains (losses)
Gain on sale of equipment 3,300
Income before taxes 170,700
Income taxes expense 45,190
Net income $ 125,510

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 $70,600 cash.

Received cash for the sale of equipment that had cost $61,600, yielding a $3,300 gain.

Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.

All purchases and sales of inventory are on credit.

(2) Compute the company's cash flow on total assets ratio for its fiscal year 2017.

Cash Flow on Total Assets Ratio
Choose Numerator: / Choose Denominator: = Cash Flow on Total Assets Ratio
Operating cash flows / Average total assets = Cash flow on total assets ratio
/ = 0

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