Required information (The following information applies to the questions displayed below. The following financial statements and additional information are reported. 2018 IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $103,900 Accounts receivable, net 74, eee Inventory 69,800 Prepaid expenses 5, eee Total current assets 252,700 Equipment 130,000 Accum. depreciation-Equipment (30, eee) Total assets $352,7ee Liabilities and Equity Accounts payable $ 31,000 Wages payable 6,600 Income taxes payable 4,000 Total current liabilities 41,600 Notes payable (long term) 36,000 Total liabilities 77,600 Equity Common stock, $5 par value 232,000 Retained earnings 43,100 Total liabilities and equity $352,700 $ 50,000 57, eee 95,500 6,600 209,100 121,000 (12,eee) $318,100 $ 39,000 16,200 5,000 60,200 66,000 126,200 166,000 25,900 $318,100 ATILLAS For Year Ended June 3e, 2019 Sales $7e8,eee Cost of goods sold 417,eee Gross profit 291, eee Operating expenses Depreciation expense $64,600 Other expenses 73, eee Total operating expenses 137,600 153, 4ee Other gains (losses) Gain on sale of equipment 12,600 Income before taxes 156,000 Income taxes expense Net income $111,510 44.490 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 $63.600 cash. d. Received cash for the sale of equipment that had cost $54,600, ylelding 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 require mormator IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Depreciation expense Gain on sale of plant assets +++ wwwvvvvvvvvvvvvv www Changes in current operating assets and liabilities Decrease in inventory Decrease in prepaid expenses Increase in accounts receivable Increase in accounts payable LLLLLLLLLLLLLLLLLLLLLLLLLLLL Cash flows from investing activities HILTOSU i allots payable $ Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at prior year-end Cash balance at current year-end Net income >111,510 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 $63.600 cash. d. Received cash for the sale of equipment that had cost $54,600. 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. Required: (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2019. (Amounts to be deducted should be indicated with a minus sign.) Q. 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 pald. c. New equipment is acquired for $63,600 cash. d. Received cash for the sale of equipment that had cost $54,600. 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. (2) Compute the company's cash flow on total assets ratio for its fiscal year 2019. Cash Flow on Total Assets Ratio 1 Choose Denominator: - Cash Flow on Total Assets Ratio Cash flow on total assets ratio