Western Environmental Inc. Comparative Balance Sheet Information June 30 2020 2019 Cash $ 89,560 $ 28,000 Accounts receivable (net) 89,000 73,000 Inventory 80,090 116,090 Prepaid expenses 6,410 6,170 Equipment 149,000 137,000 Accumulated depreciation 32,200 5,000 Accounts payable 29,800 37,000 Wages payable 7,000 17,800 Income taxes payable 2,810 4,250 Notes payable (long-term) 41,000 77,000 Common shares 269,000 209,000 Retained earnings 32,250 10,210 $779,000 477,400 $301,600 Western Environmental Inc. Income Statement For Year Ended June 30, 2020 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense $ 70,250 Other expenses 80,330 Total operating expenses Profit from operations Gain on sale of equipment Profit before taxes Income taxes Profit 150,580 $151,020 1,000 $152,020 51,020 $101,000 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 pald. c. New equipment is acquired during 2020 for $66,050. d. The profit on sale of equipment costing $54,050 during 2020 is $1,000. 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. 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