Required: Use the Western Environmental Inc. information given below to prepare a statement of cash tows for the year ended June 30, 2017, using the indirect method (List any deduction i a. A note is retired at carrying value. b The only changes affecting retained earnings during 2017 are proft and cash dividends paid c. New equipment is acquired during 2017 for $72,760 d. The protit on sale of equipment costing $60,760 during 2017 is $3,200 e Prepaid expenses and wages expense affect other expenses on the income statement 1. All sales and purchases of merchandise were on crecit MENTAL INC. Statement of Cash Flows Cash Bows from operating activites 103,200 Adjustments to reconcile proft to net T0 Increase in accounts receivable Decrease in Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable Gain on sale of equipment Net cash inflow from operating activities $164 Cash fows from investing actvities Cash received from sale of old equipment Cash paid for new equipment Net cash outflow from invesing activities Cash Sows from Sinancing activities Cash received from issuance of common shares Cash paid to retice notes payable Cash paid for dividends Net cash oudflow from financing activies balance at beginning of year anco atend of year Required: Use the Western Environmental Inc. information given below to prepare a statement of cash tows for the year ended June 30, 2017, using the indirect method (List any deduction i a. A note is retired at carrying value. b The only changes affecting retained earnings during 2017 are proft and cash dividends paid c. New equipment is acquired during 2017 for $72,760 d. The protit on sale of equipment costing $60,760 during 2017 is $3,200 e Prepaid expenses and wages expense affect other expenses on the income statement 1. All sales and purchases of merchandise were on crecit MENTAL INC. Statement of Cash Flows Cash Bows from operating activites 103,200 Adjustments to reconcile proft to net T0 Increase in accounts receivable Decrease in Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable Gain on sale of equipment Net cash inflow from operating activities $164 Cash fows from investing actvities Cash received from sale of old equipment Cash paid for new equipment Net cash outflow from invesing activities Cash Sows from Sinancing activities Cash received from issuance of common shares Cash paid to retice notes payable Cash paid for dividends Net cash oudflow from financing activies balance at beginning of year anco atend of year
