Additional Information

1. A $30,000 notes payable is retired at its $30,000 carrying (book) value in exchange for cash.
2. The only changes affecting retained earnings are net income and cash dividends paid.
3. New equipment is acquired for $57,600 cash.
4. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 gain.
5. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement.
6. All purchases and sales of inventory are on credit.

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

IKIBAN INCORPORATED Comparative Balance Sheets At June 30 20212020 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, \$5 par value Retained earnings Total 1iabilities and equity \begin{tabular}{rr} $87,500 & $44,000 \\ 65,000 & 51,000 \\ 63,800 & 86,500 \\ 4,400 & 5,400 \\ \hline 220,700 & 186,900 \\ 124,000 & 115,000 \\ (27,000) & (9,000) \\ \hline$317,700 & $292,900 \\ \hline \end{tabular} \begin{tabular}{rr} $25,000 & $30,000 \\ 6,000 & 15,000 \\ 3,400 & 3,800 \\ \hline 34,400 & 48,800 \\ 30,000 & 60,000 \\ \hline 64,400 & 108,800 \end{tabular} IKIBAN INCORPORATBD Income Statement For Year Ended June 30, 2021 \begin{tabular}{lr} Sales & $878,000 \\ Cost of goods sold & 411,000 \\ Gross profit & 267,000 \\ Operating expenses (excluding depreciation) & 67,000 \\ Depreciation expense & 58,600 \\ \hline Other gains (losses) & 141,400 \\ Gain on sale of equipment & 2,000 \\ Income before taxes & 143,400 \\ Income taxes expense & 43,890 \\ \hline Net income & $99,510 \\ \hline \end{tabular} Additional Information Additional Information a. A $30,000 notes 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 $2,000gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit. (2) Compute the company's cash flow on total assets ratio for its fiscal year 2021