Required information Exercise 12-11 Indirect: Preparing statement of cash flows LO P2, P3, A1 [The following information applies to the questions displayed below.] The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity $ 94,900 96,500 $ 65,000 72,000 84,800 118,000 6,500 9,600 282,700 264,600 145,000 136,000 (37,500) (19,500) $390,200 $381,100 $ 46,000 $ 61,500 8,100 5,500 19,200 8,000 59,600 88,700 51,000 81,000 110,600 169,700 Common stock, $5 par value 262,000 181,000 Retained earnings 17,600 30,400 Total liabilities and equity $390,200 $381,100 IKIBAN INC. Income Statement For Year Ended June 30, 2019 Sales $783,000 Cost of goods sold 432,000 Gross profit Operating expenses 351,000 Depreciation expense $79,600 Other expenses 88,000 Total operating expenses 167,600 183,400 Other gains (losses) Gain on sale of equipment 4,100 Income before taxes Income taxes expense Net income 187,500 45,990 $141,510 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 $78,600 cash. d. Received cash for the sale of equipment that had cost $69,600, yielding a $4,100 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. Exercise 12-11 Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2019. Choose Numerator: Operating cash flows Cash Flow on Total Assets Ratio Choose Denominator: = Cash Flow on Total Assets Ratio / Average total assets = = Cash flow on total assets ratio 0