Total current assets 220,700 186,900 Equipment 124,000 115,000 Accum, depreciation-Equipment (27,000) (9,000) Total assets $317,700 $292,900 Liabilities and Equity Accounts payable $ 25,000 $ 30,000 Wages payable 6,000 15,000 Income taxes payable 3,400 3,800 Total current liabilities 34,400 48,800 Notes payable (long term) 30,000 60,000 Total liabilities 64,400 108,800 Equity Common stock, $5 par value 220,000 160,000 Retained earnings 33,300 24,100 Total liabilities and equity $317,700 $292,900 Additional Information a. A $30,000 notes 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 $57,600 cash. d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit. Check (1b) Cash paid for dividends, $90,310 (1d) Cash received from equip sale, $10,000 The following financial statements and additional information are reported. (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2021. (2) Compute the company's cash flow on total assets ratio for fiscal year 2021. IKIBAN INC. Income Statement For Year Ended June 30, 2021 Sales $678,000 Cost of goods sold 411,000 Gross profit 267,000 Operating expenses (excluding depreciation) 67,000 Depreciation expense 58,600 141,400 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income IKIBAN INC. Comparative Balance Sheets 2,000 143,400 43,890 $ 99,510 At June 30 2021 2020 Assets Cash $ 87,500 $ 44,000 Accounts receivable, net 65,000 51,000 Inventory 63,800 86,500 Prepaid expenses 4,400 5,400 Total current assets 220,700 186,900 Equipment 124,000 115,000 Accum. depreciation-Equipment (27,000) (9.000)