The following financial statements and additional information are reported.

IKIBAN INCORPORATED
Comparative Balance Sheets
At June 30	2021	2020
Assets
Cash	$ 104,500	$ 49,000
Accounts receivable, net	72,500	56,000
Inventory	68,800	94,000
Prepaid expenses	4,900	6,400
Total current assets	250,700	205,400
Equipment	129,000	120,000
Accumulated depreciationEquipment	(29,500)	(11,500)
Total assets	$ 350,200	$ 313,900
Liabilities and Equity
Accounts payable	$ 30,000	$ 37,500
Wages payable	6,500	16,000
Income taxes payable	3,900	4,800
Total current liabilities	40,400	58,300
Notes payable (long term)	35,000	65,000
Total liabilities	75,400	123,300
Equity
Common stock, $5 par value	230,000	165,000
Retained earnings	44,800	25,600
Total liabilities and equity	$ 350,200	$ 313,900

IKIBAN INCORPORATED
Income Statement
For Year Ended June 30, 2021
Sales	$ 703,000
Cost of goods sold	416,000
Gross profit	287,000
Operating expenses (excluding depreciation)	72,000
Depreciation expense	63,600
	151,400
Other gains (losses)
Gain on sale of equipment	2,500
Income before taxes	153,900
Income taxes expense	44,390
Net income	$ 109,510

Additional Information

A $30,000 notes 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 $62,600 cash.

Received cash for the sale of equipment that had cost $53,600, yielding a $2,500 gain.

Prepaid Expenses and Wages Payable relate to Operating 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, 2021. (Amounts to be deducted should be indicated with a minus sign.)

Compute the companys cash flow on total assets ratio for its fiscal year 2021.

IKIBAN, INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2021 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities \begin{tabular}{|l|l|l|l|c|} \hline & \multicolumn{4}{c|}{ Cash Flow on Total Assets Ratio } \\ \hline Choose Numerator: & 1 & Choose Denominator: & = & Cash Flow on Total Assets Ratio \\ \hline & 1 & & = & Cash flow on total assets ratio \\ \hline & 1 & & = & \\ \hline \end{tabular}