Accounti g

chapter 16 ex

A $30,000 note payable is retired at its S30.1MK) cair\ mg (book) value in exchange for cash. The only changes affecting retained earnings are net income and cash dividends paid. New equipment is acquired lor $57,600 cash Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 gain. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. All purchases and sales of merchandise inventory are on credit. prepare a statement of cash flows for the year ended June 30, 2013, using the indirect method, and compute the company's cash flow on total assets ratio for its fiscal year 2013