Use the Western Environmental Inc. information given below to prepare a statement of cash flows for the

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Use the Western Environmental Inc. information given below to prepare a statement of cash flows for the year ended June 30, 2020, using the indirect method.

a. A note is retired at carrying value.

b. The only changes affecting retained earnings during 2020 are profit and cash dividends paid.

c. New equipment is acquired during 2020 for $73,980.

d. The profit on sale of equipment costing $61,980 during 2020 is $3,600.

e. Prepaid expenses and wages expense affect other expenses on the income statement.

f. All sales and purchases of merchandise were on credit.

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Fundamental Accounting Principles Volume II

ISBN: 978-1260305838

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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