SMITH INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2021 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operating activities: Income statement items not affecting cash Changes in current operating assets and liabilities Prepare the Statement of Cash flows for the year ended June 30, 2021 using the Direct Method. Hint Use the Cash Taccount on the General Ledger tab to identify the sources and trses of cash. Ust cash outfows as negative values. Reconstruct the journal entry for cash receipts from customers, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Additional Information a. A $32,000 note payable is retired at its $32,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. c. New equipment is acquired for $59,000 cash d. Recelved cash for the sale of equipment that had cost $50,000 yielding a $2100g oin e. Prepaid Expenses and Wages Payable reiate to Other Expenses on the income statement. f. All purchases and sales of inventory are on credit