Use the Western Environmental Inc information given below to prepare 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. Western Environmental Inc. Income Statement Comparative Balance Sheet Information For Year Ended June 30, 2020 June 30 Sales ...... $792,000 2020 2019 Cost of goods sold. 480,000 Cash..... $ 92,160 $ 47,000 Gross profit. $312,000 Accounts receivable (net) ........ 102,000 75.600 Operating expenses: Inventory..sad 80,220 116,220 Depreciation expense ........ $70,380 Prepaid expenses. 6,540 6,300 Other expenses... 80,460 Equipment. 162,000 150,000 Total operating expenses..... 150,840 Accumulated depreciation ...... 34,800 18,000 Profit from operations .... $161,160 Accounts payable.. 32,400 39.600 Gain on sale of equipment. 3,600 Wages payable.. 9,600 20.400 Profit before taxes.......massasis $164,760 Income taxes payable.....miami 2,940 4,380 Income taxes ... 61,160 Notes payable (long-term) ...... 54,000 90,000 Profit . $103,600 Common shares 282,000 222,000 Retained earnings. 27,180 740