The following financial statements and additional information are reported.

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 $ 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 Other Expenses on the income statement.
f. All purchases and sales of merchandise inventory are on credit.

(1) Prepare a statement of cash flows for the year ended June 30, 2013, using the indirect method,
(2) Compute the company’s cash flow on total assets ratio for its fiscal year2013.

  • CreatedNovember 26, 2013
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