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.

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