[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, 2016 and 2015
	2016				2015
Assets
Cash	$	104,500			$	63,000
Accounts receivable, net		69,200				51,900
Inventory		66,700				96,400
Prepaid expenses		4,900				6,100
Total current assets		245,300				217,400
Equipment		128,200				117,000
Accum. depreciationEquipment		(28,400	)			(10,400	)
Total assets	$	345,100			$	324,000
Liabilities and Equity
Accounts payable	$	26,300			$	32,800
Wages payable		7,300				17,000
Income taxes payable		2,900				3,900
Total current liabilities		36,500				53,700
Notes payable (long term)		46,000				74,000
Total liabilities		82,500				127,700
Equity
Common stock, $5 par value		237,000				188,000
Retained earnings		25,600				8,300
Total liabilities and equity	$	345,100			$	324,000

IKIBAN INC. Income Statement For Year Ended June 30, 2016
Sales				$	675,000
Cost of goods sold					412,000
Gross profit					263,000
Operating expenses
Depreciation expense	$	58,500
Other expenses		66,200
Total operating expenses					124,700
					138,300
Other gains (losses)
Gain on sale of equipment					2,600
Income before taxes					140,900
Income taxes expense					56,360
Net income				$	84,540

Additional Information

A $28,000 note payable is retired at its $28,000 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 $60,300 cash.

Received cash for the sale of equipment that had cost $49,100, yielding a $2,600 gain.

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

All purchases and sales of inventory are on credit.

3.

value: 1.25 points

Required information

Required:

1. Prepare a statement of cash flows for the year ended June 30, 2016, using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

IKIBAN, INC.
Statement of Cash Flows (Indirect Method)
For Year Ended June 30, 2016
Cash flows from operating activities
Adjustments to reconcile net income to net cash provided by operating activities
Income statement items not affecting cash
Changes in current operating assets and liabilities
		$0
Cash flows from investing activities
		0
Cash flows from financing activities
		0
Net increase (decrease) in cash		$0
Cash balance at prior year-end
Cash balance at current year-end		$0

4.

value: 1.25 points

Required information

2. Compute the company's cash flow on total assets ratio for its fiscal year 2016.

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