Comparative Balance Sheet Information June 30 2020 2019 Cash 89,760 30,000 Accounts receivable (net) 90,000 73,200 Inventory 80,100 116,100 Prepaid expenses 6,420 6,180 Equipment 150,000 138,000 Accumulated depreciation 32,400 6,000 Accounts payable 30,000 37,200 Wages payable 7,200 18,000 Income taxes payable 2,820 4,260 Notes payable (long-term) 42,000 78,000 Common shares 270,000 210,000 Retained earnings 31,860 10,020 Western Environmental Inc. Income Statement For Year Ended June 30, 2020 Sales Cost of goods sold Gross profit 780,000 477,600 302,400 Operating expenses: Depreciation expense 70,260 Other expenses 80,340 Total operating expenses 150,600 Profit from operations 151,800 Gain on sale of equipment Profit before taxes Income taxes Profit 1,200 153,000 51,800 101,200 Required: 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 metho (List any deduction in cash and cash outflows as a negavtive amounts) A note is retired at carrying value. The only changes affecting retained earnings during 2020 are profit and cash dividends paid. New equipment is acquired during 2020 for $66,660. The profit on sale of equipment costing $54,660 during 2020 is $1,200. Prepaid expenses and wages expense affect other expenses on the income statement. All sales and purchases of merchandise were on credit