Western Environmental Inc. Comparative Balance Sheet Information Cash Accounts receivable (net) Inventory 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 For Year Ended June 30, 2023 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 June 30 2023 2022 91,360 $ 42,400 98,000 74,800 116,180 6,260 146,000 14,000 38,800 19,600 4,340 86,000 218,000 4,900 80, 180 6,500 158,000 34,000 31,600 8,800 2,900 50,000 278,000 28,740 $ 70,340 80,420 $788.000 479.200 $398,890 150,760 $158, 040 $160,840 58.040 $102,800

Western Environmental Inc. Comparative Balance Sheet Information June 36 Western Environmental Inc. Income Statement For Year Ended June 30,2023 Sales Cost of goods sold Gross profit Operating expenses: $788,69 Depreciation expense Other expenses Total operating expenses Profit from operations Gain on sale of equipment Profit before taxes Income taxes $398,80479,200 Profit $7,34 8,42 $158,04150,760 $160,8402,800 $102,890$8,046 Required: Use the Western Environmental Inc. Information given below to prepare a statement of cash flows for the year ended June 30, 2023, using the indirect method. (List any deduction In cash and cash outliows as negative amounts.) o. A note is retired at carrying value. b. The only changes affecting retained earnings during 2023 are profit and cash dividends pald. c. New equipment is acquired during 2023 for $71,540. d. The profit on sale of equipment costing $59,540 during 2023 is $2,800. e. Prepald expenses and wages expense affect other expenses on the income statement. f. All sales and purchases of merchandise were on credit