Exercise 12-12 (Algo) Indirect: Preparing statement of cash flows LO P2, P3, A1 [The following information applies to the questions displayed below.] The following financlal statements and additional Information are reported. Additional Information a. A$30,000 notes payable is retired at its $30,000 carrying (book) value in exchange for cash. b. The only changes affecting retalned earnings are net Income and cash dividends pald. c. New equipment is acquired for $82,600 cash. d. Recelved cash for the sale of equipment that had cost $73,600, ylelding a $4,500 galn. e. Prepald Expenses and Wages Payable relate to Operating Expenses on the Income statement. f. All purchases and sales of Inventory are on credit. Requlred: (1) Prepare a statement of cash flows using the Indirect method for the year ended June 30, 2021. Note: Amounts to be deducted should be Indlcated with a minus sign. 1. How much cash is pald to acquire Inventory during year 2021 ? 2. How much cash is pald for operating expenses (excluding depreclation) during year 2021? Hint: Examine prepaid expenses and wages payable. Note: Amounts to be deducted should be Indlcated wlth a minus sign