Additional Information

A $$30,000$ notes payable is retired at its $$30,000$ carrying $($book$)$ value in exchange for cash.

The only changes affecting retained earnings are net income and cash dividends paid.

New equipment is acquired for $$73,600$ cash.

Received cash for the sale of equipment that had cost $$64,600,$ yielding a $$3,600$ gain.

Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement.

All purchases and sales of inventory are on credit.

Exercise $16-12($Algo$)$ Part $1$

Required:

$(1)$ Prepare a statement of cash flows using the indirect method for the year ended June $30,2021.$

Note: Amounts to be deducted should be indicated with a minus sign.

Exercise $16-12($Algo$)$ Part $2$

$(2)$ Compute the company$$s cash flow on total assets ratio for its fiscal year $2021.$