Western Environmental Inc.
Comparative Balance Sheet Information
	June 30
	2023			2022
Cash	$	91,760		$	42,800
Accounts receivable (net)		100,000			75,200
Inventory		80,200			116,200
Prepaid expenses		6,520			6,280
Equipment		160,000			148,000
Accumulated depreciation		34,400			16,000
Accounts payable		32,000			39,200
Wages payable		9,200			20,000
Income taxes payable		2,920			4,360
Notes payable (long-term)		52,000			88,000
Common shares		280,000			220,000
Retained earnings		27,960			920

Western Environmental Inc.
Income Statement
For Year Ended June 30, 2023
Sales				$	790,000
Cost of goods sold					479,600
Gross profit				$	310,400
Operating expenses:
Depreciation expense	$	70,360
Other expenses		80,440
Total operating expenses					150,800
Profit from operations				$	159,600
Gain on sale of equipment					3,200
Profit before taxes				$	162,800
Income taxes					59,600
Profit				$	103,200

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 direct method. (List any deduction in cash and cash outflows as negative amounts.)

A note is retired at carrying value.

The only changes affecting retained earnings during 2023 are profit and cash dividends paid.

New equipment is acquired during 2023 for $72,760.

The profit on sale of equipment costing $60,760 during 2023 is $3,200.

Prepaid expenses and wages expense affect other expenses on the income statement.

All sales and purchases of merchandise were on credit.