Western Environmental Inc. Comparative Balance Sheet Information 2020 June 30. 2019 $ 89,960 $ 32,000 Cash Accounts receivable (net) Inventory es Prepaid expenses Equipment Accumulated depreciation. Accounts payable Wages payable Income taxes payable Notes payable (long-term) Common shares Retained earnings Western Environmental Inc. Income Statement 91,000 73,400 80,110 116,110 6,430 6,190 151,000 139,000 32,600 7,000 30,200 37,400 7,400 18,200 2,830 4,270 43,000 79,000 271,000 211,000 31,470 9,830 For Year Ended June 30, 2020 Sales $781,000 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 477,800 $303,200 $ 70,270 80,350 150,620 $152,580 1,400 $153,980 52,580 $101,400 Required Ps Required: Use the Western Environmental Inc. information given below to prepare a statement of cash flows for the year ended June 30, 2020, using the indirect method. (List any deduction in cash and cash outflows as negative amounts.) 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 $67,270 d. The profit on sale of equipment costing $55,270 during 2020 is $1,400. 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. Statement of Cash Flows For Year Ended June 30, 2020 Cash flows from operating activities Adjustments to reconcile profit to net cash provided by operating activities) 4 tes WESTERN ENVIRONMENTAL INC. Statement of Cash Flows For Year Ended June 30, 2020 Cash flows from operating activities: Adjustments to reconcile profit to net cash provided by operating activities: $ Cash flows from investing activities: Cash flows from financing activities