Required Information

Exercise $16-12($Algo$)$ Indirect: Preparing statement of cash flows LO P$2,$ P$3,$ A$1$

$[$The following informotion opplies to the questions disployed below.$]$

The following financial 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 cosh$.$

b$.$ The only changes affecting retained earnings are net income and cash dividends paid.

c$.$ New equipment is acquired for $$61,600$ cosh$.$

d$.$ Received cash for the sale of equipment that had cost $$52,600.$ yielding o $$2,400$ gain.

e$.$ Prepaid Expenses and Woges Paysble relate to Operating Expenses on the income statement.

f$.$ All purchoses and sales of inventory ore on credit.

ixerclse $16-12($Algo$)$ Part $1$

equired:

I$)$ Prepare a statement of cash flows using the inclirect method for the year ended June $30,2021.$

lote: Amounts to be deducted should be Indicated with a minus sign.