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(1) Required information [The following information applies to the questions displayed below] The following financial statements and additional information are reported Additional Information a. A
(1) Required information [The following information applies to the questions displayed below] The following financial statements and additional information are reported 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 $67.600 cash. d. Recelved cash for the sale of equiprtent that had cost $58,600, yielding a $3,000 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the income statement. t. All purchases and sales of inventory are on credit IKTEN INCOAPORATEO Inceate Statesent Sales Cost of goods sold Gross profit Coerating expenses (excluding deprechatien) 307,000 Depreciation eapense 0ther gains (losses) Gain on sale of resipment tncone before taxes incose taxes expense Net incose. 161,4e968,690 Additional information a. A $30,000 note payable is refired at ifs $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 acguired for $67,600 cash. d. Recelved cash for the sale of ecuipment that had cost $58,500. yolding a $3.000pain e. Prepoid Expenses and Wages Payoble ratate to Operating Expenses on the income statement. 1. All purchases and sales of inventory are on credit Required: (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2020. Note: Amounts to be deducted should be indicated with a minus sign
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