[The following information applies to the questions displayed below.]

The following financial statements and additional information are reported.

IKIBAN INC. Comparative Balance Sheets June 30, 2015 and 2014
	2015				2014
Assets
Cash	$	111,600			$	64,200
Accounts receivable, net		69,400				51,800
Inventory		66,200				96,100
Prepaid expenses		4,700				5,900
Total current assets		251,900				218,000
Equipment		124,700				113,000
Accum. depreciationEquipment		(28,200	)			(10,700	)
Total assets	$	348,400			$	320,300
Liabilities and Equity
Accounts payable	$	26,800			$	32,700
Wages payable		7,300				17,000
Income taxes payable		2,600				4,100
Total current liabilities		36,700				53,800
Notes payable (long term)		54,000				76,000
Total liabilities		90,700				129,800
Equity
Common stock, $5 par value		233,000				183,000
Retained earnings		24,700				7,500
Total liabilities and equity	$	348,400			$	320,300

IKIBAN INC. Income Statement For Year Ended June 30, 2015
Sales				$	669,000
Cost of goods sold					408,000
Gross profit					261,000
Operating expenses
Depreciation expense	$	57,900
Other expenses		66,200
Total operating expenses					124,100
					136,900
Other gains (losses)
Gain on sale of equipment					2,600
Income before taxes					139,500
Income taxes expense					55,800
Net income				$	83,700

Additional Information

a.	A $22,000 note payable is retired at its $22,000 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 $61,200 cash.
d.	Received cash for the sale of equipment that had cost $49,500, yielding a $2,600 gain.
e.	Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
f.	All purchases and sales of inventory are on credit.

7.

Required information

Required:
(1)	Prepare a statement of cash flows for the year ended June 30, 2015, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

2)	Compute the company's cash flow on total assets ratio for its fiscal year 2015.