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The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2013 and 2012 2013 2012 Assets Cash $ 92,700

The following financial statements and additional information are reported.
IKIBAN INC. Comparative Balance Sheets June 30, 2013 and 2012
2013 2012
Assets
Cash $ 92,700 $ 52,300
Accounts receivable, net 69,600 51,600
Inventory 65,900 96,600
Prepaid expenses 5,500 4,400
Equipment 127,800 118,000
Accum. depreciationEquipment (28,100 ) (10,900 )
Total assets $ 333,400 $ 312,000
Liabilities and Equity
Accounts payable $ 26,300 $ 32,100
Wages payable 8,000 16,300
Income taxes payable 2,500 3,900
Notes payable (long term) 42,000 72,000
Common stock, $5 par value 230,000 180,000
Retained earnings 24,600 7,700
Total liabilities and equity $ 333,400 $ 312,000

IKIBAN INC. Income Statement For Year Ended June 30, 2013
Sales $ 677,000
Cost of goods sold 402,000
Gross profit 275,000
Operating expenses
Depreciation expense $ 58,500
Other expenses 66,600
Total operating expenses 125,100
149,900
Other gains (losses)
Gain on sale of equipment 2,300
Income before taxes 152,200
Income taxes expense 60,880
Net income $ 91,320

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 $58,600 cash.
d. Received cash for the sale of equipment that had cost $48,800, yielding a $2,300 gain.
e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
f.

All purchases and sales of merchandise inventory are on credit.

Prepare a statement of cash flows for the year ended June 30, 2013, using the indirect method.

Compute the company's cash flow on total assets ratio for its fiscal year 2013.

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