Exercise $12-12($Algo$)$ Indirect: Preparing statement of cash flows LO P$2,$ P$3,$ A$1$

$[$The following information applies to the questions displayed below.$]$

The following financial statements and additional information are reported. 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 $$75,600$ cash.

d$.$ Received cash for the sale of equipment that had cost $$66,600,$ yielding a $$3,800$ gain.

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

f$.$ All purchases and sales of inventory are on credit.

Exercise $12-12($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.

IKIBAN, INCORPORATED

Statement of Cash Flows $($Indirect Method$)$

For Year Ended June $30,2021\backslash$table$[[$Net income,$5,$$$135,510$vv$,],[$Adjustments to reconcile net income to net cash provided by operating activities$],[$Income statement items not affecting cash$],[$Gain on sale of plant assets,$,(3,800),],[$Depreciation expense,$(,76,600$vv$,],[$Changes in current operating assets and liabilities$],[$Increase in accounts receivable,$,29,500\backslash$times $,],[$Decrease in inventory,$,29,000\backslash$times $,],[$Decrease in accounts payable,$,29,000\backslash$times $,],[$Decrease in wages payable,$,29,000\backslash$times $,],[$Decrease in income taxes payable,$,29,000\backslash$times $,],[$Decrease in prepaid expenses,,$29,000\backslash$times $,],[$Net cash provided by operating activities,,,$382,810],[$Cash flows from investing activities$],[$Cash paid for equipment,$,(29,000)\backslash$times $,],[$Cash received from sale of equipment,$,29,000\backslash$times $,],[$Net cash used in investing activities,$,,0],[$Cash flows from financing activities$],[$Cash received from stock issuance,$,,],[$Cash paid to retire notes,$,,],[$Cash paid for dividends,$,,],[,,0],[$Net increase $($decrease$)$ in cash,,,$382,810],[$Cash balance at prior year$-$end$],[$Cash balance at current vear$-$end,,,$382,810]]$ Exercise $12-12($Algo$)$ Part $2$

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

Answer is not complete.