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, 2019.

(2) Compute the company’s cash flow on total assets ratio for fiscal year 2019.

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IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales ..... $678,000 Cost of goods sold 411,000 Gross profit..... 267,000 Operating expenses $58,600 Depreciation expense Other expenses ..... Total operating expenses.. 67,000 125,600 141,400 Other gains (losses) Gain on sale of equipment.. 2,000 Income before taxes.. 143,400 43,890 Income taxes expense $ 99,510 Net income.. 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, yield- ing a $2,000 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.