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GL1201 (Algo) - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional information. Additional Information a. A $45,000 note

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GL1201 (Algo) - Based on Exercise 12-11 LO P2, P3, A1 Use the following financial statements and additional information. 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 $64,000 cash. d. Received cash for the sale of equipment that had cost $53.000, yielding a $2,700 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. Prepare the operating activities section of the statement of cash flows using the indirect method. Enter reductions to net cash provided by operating activities as negative values. Post-closing ECO BUILD INCORPORATED Statement of Cash Flows findirect Method) For Yoarendedilune 30,2021 \begin{tabular}{|l|l|l|} \hline Cash flows from operating activities: & \\ \hline Cash paid for equipment & & \\ \hline Adjustments to reconclie net income to net cash provided by operating activities: & & \\ \hline Income statement items not alfecting cash & & \\ \hline Cash paid for operating expenses & & \\ \hline & & \\ \hline Changes in current operating assets and liabiities & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline \end{tabular} Statement of Cash Flows (Direct Method) For Year Ended June 30, 2021 \begin{tabular}{|l|l|l|} \hline Cash flows from operating activities: \\ \hline Net income & & \\ \hline Depreciation expense & & \\ \hline Increase in accounts recelvable & & \\ \hline Decrease in inventory & & \\ \hline Decrease in accounts payable & & \\ \hline Cash flows from investing activities: & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline & \\ \hline \end{tabular} Prev 1. \begin{tabular}{|c|c|c|c|c|c|} \hline No: & Date & Accountitie & & Doblit & Crndit \\ \hline \multirow[t]{2}{*}{1} & June 30 & Cash & 0 & 742,0000 & \\ \hline & & Accounts recelvable, net & 0 & 54 & 742,000 \\ \hline \multirow[t]{2}{*}{2} & June 30 & Accounts payable & 0 & 436,000 & x \\ \hline & & Retained earnings & & & 436,000X \\ \hline \multirow[t]{2}{*}{3} & June 30 & Depreclation expense & 0 & 65,000 & \\ \hline & & Accumulated depreclation - Equipment & & & 65,0000 \\ \hline \multirow[t]{2}{*}{4} & June 30 & Other expenses & 0 & 81,800 & \\ \hline & & Cash & 8 & & 81,800 \\ \hline \multirow[t]{3}{*}{5} & June 30 & Cash & 0 & 14,7000 & \\ \hline & & Accumulated depreciation - Equipment & & 41,0000 & \\ \hline & & Equipment & 0 & & 12,000 \\ \hline \multirow[t]{3}{*}{6} & June 30 & Income taxes payable & & 49,080Q & \\ \hline & & Income taxes expense & 0 & & 48,580 \\ \hline & & & & & \\ \hline \multirow[t]{2}{*}{7} & June 30 & Notes payable (long-term) & 0 & 45,0000 & \\ \hline & & Cash & 0 & & 45,0000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline 7 & June 30 & Notes payable (long-term) & 0 & 45,0000 & \\ \hline & & Cash & 0 & & 45,0000 \\ \hline \multirow[t]{2}{*}{8} & June 30 & Equipment: & 0 & 34,0000 & \\ \hline & & Cash & & & 64,0000 \\ \hline \multirow[t]{2}{*}{9} & June 30 & Cash & 0 & 60,0000 & \\ \hline & & Common stock; \$S par value & 0 & & 60,000 \\ \hline \multirow[t]{3}{*}{10} & June 30 & Sales & 0 & 757,0000 & \\ \hline & & Gain on sale of equipment. & 0 & 2,7000 & \\ \hline & & Income summary & 0 & & 759,7000 \\ \hline \multirow[t]{5}{*}{11} & June 30 & Income summary & & 649,5800 & \\ \hline & & Cost of goods sold & & & 463,0000 \\ \hline & & Depreclasion expense & & & 65,0000 \\ \hline & & Other expenses & 0 & & 73,0000 \\ \hline & & Income taxes expense & 0 & E & 48,5800 \\ \hline \multirow[t]{2}{*}{12} & June 30 & Income summary & 0 & 110,1200 & \\ \hline & & Retained earnings & & & 110,1200 \\ \hline \multirow[t]{2}{*}{13} & June 30 & Fetained earnings & 8 & 94,1200 & \\ \hline & & Cash & 0 & & 94,1200 \\ \hline \end{tabular}

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