Required Use the VicWest Inc. information given below to prepare a statement of cash flows for the year ended June 30, 2014, using the indirect method.
a. A note is retired at carrying value.
b. The only changes affecting retained earnings during 2014 are net income and cash dividends paid.
c. New equipment is acquired during 2014 for $70,320.
d. The gain on sale of equipment costing $58,320 during 2014 is $2,400.
e. Prepaid expenses and wages expense affect other expenses on the income statement.
f. All sales and purchases of merchandise were oncredit.

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VicWest Inc. Comparative Balance Sheet Informationn VicWest Inc. Income Statement For Year Ended June 30, 2014 June 30 $786,000 478,800 $307,200 2014 2013 Cost of goods sold Accounts receivable (net) Inventory... Prepaid expenses 74,400 80,160 116,160 6,240 Equipment156,000 144,000 12,000 38,400 19,200 4,320 84,000 96,000 Operating expenses: Depreciation expense. $70,320 ....80,400 6,480 Accounts payable Wages payable.. Income taxes payable.. Notes payable (long-term) 33,600 31,200 8,400 2,880 48,000 150,720 $156,480 2,400 $158,880 54,768 $104,112 Gain on sale of equipment.... Net income. 29,520 8,880