Use the following financial statements and additional information.

ONPOINT INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018
	2019	2018
Assets
Cash	$ 127,700	$ 74,600
Accounts receivable, net	70,000	55,000
Inventory	65,000	90,000
Prepaid expenses	4,500	5,600
Total current assets	267,200	225,200
Equipment	131,000	121,000
Accumulated depreciationEquipment	(33,000)	(11,000)
Total assets	$ 365,200	$ 335,200
Liabilities and Equity
Accounts payable	$ 28,000	$ 34,000
Wages payable	7,000	17,000
Income taxes payable	3,800	4,200
Total current liabilities	38,800	55,200
Notes payable (long term)	35,000	70,000
Total liabilities	73,800	125,200
Equity
Common stock, $5 par value	250,000	180,000
Retained earnings	41,400	30,000
Total liabilities and equity	$ 365,200	$ 335,200

ONPOINT INCORPORATED Income Statement For Year Ended June 30, 2019
Sales		$ 699,000
Cost of goods sold		427,000
Gross profit		272,000
Operating expenses
Depreciation expense	$ 61,000
Other expenses	69,000
Total operating expenses		$ 130,000
		142,000
Other gains (losses)
Gain on sale of equipment		2,200
Income before taxes		144,200
Income taxes expense		44,140
Net income		$ 100,060

Additional Information

1. A $35,000 note payable is retired at its $35,000 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 $60,000 cash.
4. Received cash for the sale of equipment that had cost $50,000, yielding a $2,200 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.

and

General Indirect Requirement General Journal Trial Balance Direct Method Ledger Method Prepare the operating activities section of the statement of cash flows using the indirect method. Enter reductions to net cash provided by operating activities as negative values. Post-closing ONPOINT INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Income statement items not affecting cash Depreciation expense Gain on sale of equipment Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable Net cash provided by operating activities, using the direct method: $ 242,640 General General Requirement Trial Balance Direct Method Indirect Method Journal Ledger Prepare the Statement of Cash flows for the year ended June 30, 2019 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. Post-closing ONPOINT INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities: Cash received from customers Cash paid for merchandise Cash paid for operating expenses Cash paid for income taxes Net cash provided by operating activities Cash flows from investing activities: Cash received from sale of equipment Cash paid for equipment Cash flows from financing activities: Cash received from stock issuance Cash paid to retire notes Cash paid for dividends Net increase in cash Cash balance at prior year-end Cash balance at current year-end (408,000) 33 33 S684.000 (77,900) 44,540 X lololol (35,000) (50,000) 70,000 (35,000) (123,260) $ 242,640 (85,000) (88,260) 69,380 74,800 $ S 143,980