Western Environmental Inc. Comparative Balance Sheet Information June 30 2020 2019 Cash $ 89,160 $ 24,000 Accounts receivable (net) 87,000 72,600 Inventory 80,070 116,070 Prepaid expenses 6, 390 6,150 Equipment 147,000 135,000 Accumulated depreciation 31,800 3,000 Accounts payable 29,400 36,600 Wages payable 6,600 17,400 Income taxes payable 2,790 I 4,230 Notes payable (long-term) 39,000 75,000 Common shares 267,000 207,000 Retained earnings 33,030 10,590 $777,000 477,000 $300,000 Western Environmental Inc. Income Statement For Year Ended June 30, 2020 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense $ 70,230 Other expenses 80, 310 Total operating expenses Profit from operations Gain on sale of equipment Profit before taxes Income taxes 158, 540 $149,460 600 $150,060 49,460 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 os 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 $64.830, d. The profit on sale of equipment costing S52,830 during 2020 is 5600 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 ING ING 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