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.

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 $73,980.

d. The profit on sale of equipment costing $61,980 during 2020 is $3,600.

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

f. All sales and purchases of merchandise were on credit.

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Western Environmental Inc. Western Environmental Inc. Income Statement Comparative Balance Sheet Information For Year Ended June 30, 2020 June 30 $792,000 Sales. 2020 2019 Cost of goods sold. Gross profit. $ 92,160 $ 47,000 480,000 $312,000 Cash. Accounts receivable (net). 102,000 75,600 Operating expenses: Inventory. 80,220 116,220 Depreciation expense. Other expenses. Total operating expenses. Profit from operations.. Gain on sale of equipment. $70,380 Prepaid expenses 6,300 6,540 Equipment. 80,460 162,000 150,000 150,840 Accumulated depreciation. 34,800 18,000 $161,160 Accounts payable. Wages payable. Income taxes payable. 32,400 39,600 3,600 $164,760 9,600 20,400 Profit before taxes.. 4,380 2,940 Income taxes. 61,160 Notes payable (long-term). 90,000 54,000 Profit. $103,600 222,000 Common shares 282,000 Retained earnings. 27,180 740