Western Environmental Inc. Comparative Balance Sheet Information June 30 \begin{tabular}{lrr} & \multicolumn{1}{c}{2020} & \multicolumn{1}{c}{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 \end{tabular} Western Environmental Inc. Income Statement For Year Ended June 30, 2020 Sales 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 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 $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