Use the following financial statements and additional information to
(1) Prepare a statement of cash flows for the year ended June 30, 2011, using the indirect method, and
(2) Compute the company€™s cash flow on total assets ratio for its fiscal year 2011.

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 $58,600 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 oncredit.

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GECKO INC. Comparative Balance Sheets June 30, 2011 and 2010 2011 2010 GECKO INC. Income Statement For Year Ended June 30,2011 $ 85.800 45,000 52,000 96,800 Accounts recelvable, net 70,000 66,800 5.400 30,000 Cost of goods sold Gross proft Operating expenses $668.000 Prepaid expenses 412,000 Equipmen00 20,000 256,000 Accum. depreclation-Equipment _(28,000 (10,000) Total assets $330,000 $309,000 Depreclation expense Other expenses 67,000 Liabilities and Equit)y Total operating expenses 25,600 Accounts payable 130.400 Wages payable $. 26.000 32.000 16,000 3,600 70,000 230,000 80,000 7.400 $330,000 $309,000 7,000 2.400 40,000 Other galns (losses) Income taxes payable Galn on sale of equipment Income before taxes 2.000 Notes payable (long term) 32.400 Common stock, $5 par value 45,640 Retalned earnings 24,600 Net Income $86,760 Total llablitles and equlty