Use the Western Environmental Inc information given below to prepare a statement of cash flows for the year ended June 30, 2020, using 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 $73,980

D. The profit on sale of equipment costing $61,980 during 2020 is $3,600

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. Income Statement For Year Ended June 30, 2020 $792,000 480,000 $312,000 $70,380 80,460 Sales Cost of goods sold. Gross profit...... Operating expenses: Depreciation expense Other expenses. Total operating expenses. Profit from operations. Gain on sale of equipment. Profit before taxes.. Income taxes Profit Western Environmental Inc. Comparative Balance Sheet Information June 30 2020 2019 Cash. $ 92,160 $ 47,000 Accounts receivable (net) 102,000 75,600 Inventory. 80,220 116,220 Prepaid expenses 6,540 6,300 Equipment.... 162,000 150,000 Accumulated depreciation 34,800 18,000 Accounts payable. 32,400 39,600 Wages payable. 9,600 20,400 Income taxes payable. 2,940 4,380 Notes payable (long-term). 54,000 90,000 Common shares 282,000 222,000 Retained earnings 27,180 740 150,840 $161,160 3,600 $164,760 61,160 $103,600