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Required information Exerclse 12.12 (Algo) Indirect Preparing statement of cash flows tO P2, P3, A1 (The following information applies to the questions disployed below) The

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Required information Exerclse 12.12 (Algo) Indirect Preparing statement of cash flows tO P2, P3, A1 (The following information applies to the questions disployed below) The following finoncial statements and sddicional information ore reported: TKIEN INCORPDRATED Income Statenent. For Year Ended June 30, 2020 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation Depreciation expense 738,eze other gains (tosses) Gain on sale of equipoent Income before taxes Income taxes expense 315,000423,eee Net income 79,000 165,49070,680 Additional information a. A $30,000 note payable is retred at ins $30.000 carrying (bookj value in exchange for cash b. The only chonges affecting retained camings are net income and cash dividends paid. c. New equipenent is acquired for $69,600 cash. d. Rincelved cast for the sale of equiponent that had cost $60,600. vielding a $3200 gain. e. Prepaid Expenses and Woges Parable relate to Operating Experses on the income statemere. f. Al purchases and sales of inventory are on credit. Other gains (losses) Gain on sale of equiphent Income before taxes Incone taxes expense Net income 3,200168,60045,09023,510 Additional information a. A $30,000 note payable is retired at its $30,000 carrying (bock) value in exchange for cash b. The only changes affecting retained eamings are not income and cash dividends paid c. Now equipment is acquired for $69,600 cash d. Recelved cash for the sale of equipment that had cost $60,600, yieiding 4$3.200 gan. e. Prepaid Expenses and Wages Payable retate to Gperating Experises on the income suatement. f. All purchases and sales of inventory are on credit. Exercise 12-12 (Algo) Part 1 Pequired: (1) Prepare a statement of cash flows using the indirect method for the year ended June 30, 2020 Note Amounts to be deducted should be indicated with a minus sign

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