Western Environmental Inc.
Comparative Balance Sheet Information
	June 30
	2023			2022
Cash	$	92,360		$	51,000
Accounts receivable (net)		103,000			75,800
Inventory		80,230			116,230
Prepaid expenses		6,550			6,310
Equipment		163,000			151,000
Accumulated depreciation		35,000			19,000
Accounts payable		32,600			39,800
Wages payable		9,800			20,600
Income taxes payable		2,950			4,390
Notes payable (long-term)		55,000			91,000
Common shares		283,000			223,000
Retained earnings		26,790			2,550

Western Environmental Inc.
Income Statement
For Year Ended June 30, 2023
Sales				$	793,000
Cost of goods sold					480,200
Gross profit				$	312,800
Operating expenses:
Depreciation expense	$	70,390
Other expenses		80,470
Total operating expenses					150,860
Profit from operations				$	161,940
Gain on sale of equipment					3,800
Profit before taxes				$	165,740
Income taxes					61,940
Profit				$	103,800

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 outflows as negative amounts.)

1. A note is retired at carrying value.
2. The only changes affecting retained earnings during 2023 are profit and cash dividends paid.
3. New equipment is acquired during 2023 for $74,590.
4. The profit on sale of equipment costing $62,590 during 2023 is $3,800.
5. Prepaid expenses and wages expense affect other expenses on the income statement.
6. All sales and purchases of merchandise were on credit.