Use the following financial statements and additional information.

BARCELONA INCORPORATED
Comparative Balance Sheets
June 30, 2021 and 2020
	2021	2020
Assets
Cash	$ 86,300	$ 41,700
Accounts receivable, net	78,000	61,000
Inventory	66,000	92,000
Prepaid expenses	5,000	6,300
Total current assets	235,300	201,000
Equipment	153,000	142,000
Accumulated depreciationEquipment	(39,000)	(13,000)
Total assets	$ 349,300	$ 330,000
Liabilities and Equity
Accounts payable	$ 30,000	$ 36,000
Wages payable	8,000	19,000
Income taxes payable	3,600	4,000
Total current liabilities	41,600	59,000
Notes payable (long term)	38,000	75,000
Total liabilities	79,600	134,000
Equity
Common stock, $5 par value	220,000	160,000
Retained earnings	49,700	36,000
Total liabilities and equity	$ 349,300	$ 330,000

BARCELONA INCORPORATED
Income Statement
For Year Ended June 30, 2021
Sales		$ 803,000
Cost of goods sold		491,000
Gross profit		312,000
Operating expenses
Depreciation expense	$ 68,000
Other expenses	77,000
Total operating expenses		$ 145,000
		167,000
Other gains (losses)
Gain on sale of equipment		3,300
Income before taxes		170,300
Income taxes expense		52,130
Net income		$ 118,170

Additional Information

1. A $37,000 note payable is retired at its $37,000 carrying (book) value in exchange for cash.
2. The only changes affecting retained earnings are net income and cash dividends paid.
3. New equipment is acquired for $67,000 cash.
4. Received cash for the sale of equipment that had cost $56,000, yielding a $3,300 gain.
5. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
6. All purchases and sales of inventory are on credit.

Prepare the Statement of Cash flows for the year ended June 30, 2021 using the Direct Method. Hint Use the Cash T-account on the General Ledger tab to identify the sources and uses of cash. List cash outflows as negative values.

Fill in Blanks

Unadjusted Adjusted Post-closing

Post-closing

BARCELONA INCORPORATED
Statement of Cash Flows (Direct Method)
For Year Ended June 30, 2021
Cash flows from operating activities:
Cash received from customers	$786,000
Cash paid for merchandise
Cash paid for operating expenses
Cash paid for income taxes
		$786,000
Cash flows from investing activities:
Cash paid for equipment
Cash received from sale of equipment
Cash flows from financing activities:
Cash paid for dividends
Cash paid to retire notes
Cash received from stock issuance
Net cash used by financing activities