Western Environmental Inc. Comparative Balance Sheet Information June 30 2020 2019 $ 90,560 $ 35,000 Cash Accounts receivable (net) 94,000 74,000 Inventory 80,140 116,140 Prepaid expenses Equipment 6,460 6,220 154,000 142,000 Accumulated depreciation 33,200 10,000 Accounts payable! 30,000 38,000 Wages payable 8,000 18,000 Income taxes payable 2,860 4,300 Notes payable (long-term) 46,000 82,000 Connon shares 274,000 214,000 Retained earnings 30,300 9,260 Western Environmental Inc... Income Statement For Year Ended June 30, 20201 Sales $784,000 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 478,400 $305,600 $ 70,300 50,350 150,688 $154,920 2,000 $156,920 54,920 $102,000 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 $69.00 d. The profit on sale of equipment costing $57.100 during 2020 is $2.000. 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. < Prey 5 of 10 Next >