IKIBAN INC. Comparative Balance Sheets June 30, 2015 and 2014
	2015				2014
Assets
Cash	$	96,500			$	56,200
Accounts receivable, net		69,300				51,400
Inventory		66,600				96,800
Prepaid expenses		5,100				6,400
Total current assets		237,500				210,800
Equipment		135,200				120,000
Accum. depreciationEquipment		(28,900	)			(10,500	)
Total assets	$	343,800			$	320,300
Liabilities and Equity
Accounts payable	$	26,900			$	32,200
Wages payable		7,100				16,700
Income taxes payable		2,500				4,100
Total current liabilities		36,500				53,000
Notes payable (long term)		42,000				70,000
Total liabilities		78,500				123,000
Equity
Common stock, $5 par value		240,000				189,000
Retained earnings		25,300				8,300
Total liabilities and equity	$	343,800			$	320,300

IKIBAN INC. Income Statement For Year Ended June 30, 2015
Sales				$	673,000
Cost of goods sold					407,000
Gross profit					266,000
Operating expenses
Depreciation expense	$	53,000
Other expenses		66,900
Total operating expenses					119,900
					146,100
Other gains (losses)
Gain on sale of equipment					2,600
Income before taxes					148,700
Income taxes expense					59,480
Net income				$	89,220

a. A $28,000 note payable is retired at its $28,000 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 $63,800 cash.

d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,600 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.

IKIBAN, INC. Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2015 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities $0 Cash flows from investing activities 0 Cash flows from financing activities 0 Net increase (decrease) in cash $0 Cash balance at prior year-end Cash balance at current year-end $0

Cash Flow on Total Assets Ratio Choose Numerator: / Choose Denominator: = Cash Flow on Total Assets Ratio / = Cash flow on total assets ratio / =

(2) Compute the company's cash flow on total assets ratio for its fiscal year 2015.