Required:- Use the Western Environmental Inc. information given below to prepare a statement of cash flows for the year ended June 30, 2020, using the indirect method. a. A note is retired at carrying value. b. The only changes affecting retained earnings during 2020 are profit and cash dividends paid. c. New equipment is acquired during 2020 for $69.710. d. The profit on sale of equipment costing $57,710 during 2020 is $2,200. e. Prepaid expenses and wages expense affect other expenses on the income statement. f. All sales and purchase of merchandise were on credit.

Western Environmental Inc. Comparative Balance Sheet Information June 30 2020 2019 Cash $ 90,760 $ 40,000 Accounts receivable (net) 95,000 74, 200 Inventory 80,150 116, 150 Prepaid expenses 6,470 6, 230 Equipment 155,000 143,000 Accumulated depreciation 33,400 11,000 Accounts payable 31,000 38,200 Wages payable 8,200 19,000 Income taxes payable 2,870 4,310 Notes payable (long-term) 47,000 83,000 Common shares 275,000 215 000 Retained earnings 29,910 9,070 pped Book Print Ferences $785,000 478, 600 $306, 400 Western Environmental Inc. Income Statement For Year Ended June 30, 2020 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense $ 70, B10 Other expenses 80, 390 Total operating expenses Profit from operations Gain on sale of equipment Profit before taxes Income taxes Profit 150, 700 $155, 700 2,200 $157, 900 55,700 $102,200 Required: Use the Western Environmental Inc. information given below to prepare a statement of cash flows for the year ended June 30, 2020, using the indirect method. (List any deduction in cash and cash outflows as negative amounts.) a. A note is retired at carrying value. b. The only changes affecting retained earnings during 2020 are profit and cash dividends paid. c. New equipment is acquired during 2020 for $69,710. d. The profit on sale of equipment costing $57,710 during 2020 is $2,200. e. Prepaid expenses and wages expense affect other expenses on the income statement. f. All sales and purchases of merchandise were on credit. WESTERN ENVIRONMENTAL INC. Statement of Cash Flows es For Year Ended June 30, 2020 Cash flows from operating activities: Adjustments to reconcile profit to net cash provided by operating activities