Problem 13.5 (LO2) Statement of Cash Flows, Direct Method The Octel Corporation has the follow- ing financial statements: Octel Corporation Balance Sheets As of June 30, 2019, and 2020 Assets Cash Accounts receivable Inventory Prepaid expenses Plant and equipment Accumulated depreciation Total assets Liabilities and Equity Accounts payable (all relate to inventory purchases) Accrued wages 2020 2019 $ 56,400 $ 48,000 8,300 8,600 15,200 14,100 13,800 12,600 68,250 68,250 (18,200) (9,600) $143,750 $141,950 $ 12,500 $ 12,600 3,300 3,100 Common stock 56,100 54,500 Retained earnings 71,850 71,750 Total liabilities and equity $143,750 $141,950 Octel Corporation Income Statement For the Year Ended June 30, 2020 Sales $267,000 Less: Cost of goods sold (73,200) Gross margin 193,800 Less operating expenses: Wage expense $95,900 Other operating expenses 61,000 Depreciation expense 8,600 (165,500) Net income $ 28,300 Dividends of $28,200 were paid during the year. No equipment was purchased or retired during the year. Required Using the direct method for the operating section, prepare a statement of cash flows for fiscal 2020.