Additional Information a. A $45,000 note payable is retired at its $45,000 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 $70,000 cash. d. Recelved cash for the sale of equipment that had cost $58,000, yielding a $3,900 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. Post-closing DELRAY INCORPORATED Statement of Cash Flows (Direct Methof) For Year Ended June 30, 2019 Cash flows from operating activities: Cash received from customers \begin{tabular}{|l|} \hline Cash paid for merchandise \\ \hline Cash paid for operating expense \end{tabular} Cash paid for income taxes Cash flows from investing activities: Cash received from sale of equipment Cash paid for equipment Cash flows from financing activities: DELRAY INCORPORATED Statement of Cash Flows (indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Income statement items not affecting cash Depreciation expense Loss on sale of equipment Changes in current operating assets and liabilities increase in accounts receivable Increase in inventory Decrease in prepaid expenses Decrease in accounts payable Increase in accounts payable Direct Method