Extracted text: The following financial statements and additional information are reported. IKIBAN INCORPORATED Comparative Balance Sheets 2021 At June 30 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment 2020 $ 94,900 96,500 84,800 6,500 282,700 145,000 (37,500) $ 390,200 $ 65,000 72,000 118,000 9,600 264,600 136,000 (19,500) $ 381,100 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 $ 46,000 8,100 5,500 59,600 51,000 110,600 $ 61,500 19,200 8,000 88,700 81,000 169,700 262,000 17,600 $ 390,200 181,000 30,400 $ 381,100 Total liabilities and equity IKIBAN INCORPORATED Income Statement For Year Ended June 30, 2021 $ 783,000 432,000 351,000 88,000 79,600 183,400 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Gain on sale of equipment Income before taxes 4,100 187,500 45,990 $ 141,510 Income taxes expense Net income 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 $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 Operating Expenses on the income statement. f. All purchases and sales of inventory are on credit. Exercise 12-12 (Algo) Part 2 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2021. Cash Flow on Total Assets Ratio Choose Numerator: Choose Denominator: Cash Flow on Total Assets Ratio Cash flow on total assets ratio %3D