Additional Information

$a.A$ $$35,000$ note payable $is$ retired $at$ its $$35,000$ carrying $(book)$ value $in$ exchange for cash.

$b.$ The only changes affecting retained earnings are net income and cash dividends paid.

$c.$ New equipment $is$ acquired for $$93,000$ cash.

$d.$ Received cash for the sale $of$ equipment that had cost $$78,000,$ yielding $a$ $$8,700$ gain.

$e.$ Prepaid Expenses and Wages Payable relate $to$ Other Expenses $on$ the income statement.

$f.$ All purchases and sales $of$ inventory are $on$ credit. $e.$ Prepaid Expenses and Wages Payable relate $to$ Other Expenses $on$ the Income statement.

$f.$ All purchases and sales $of$ inventory are $on$ credit.

Prepare the Statement $of$ Cash flows for the year ended June $30,2021$ using the Direct Method. Hint Use the Cash Taccount $on$ the General Ledger tab $to$ identify the sources and uses $of$ cash. List cash outflows $as$ negative values.

Unadjusted Net income

$$166,330$

Additional Informatlon

$a.A$ $$35,000$ note payable $is$ retired $at$ its $$35,000$ carrying $(book)$ value $in$ exchange for cash.

$b.$ The only changes affecting retained earnings are net income and cash dividends paid.

$c.$ New equipment $is$ acquired for $$93,000$ cash.

$d.$ Received cash for the sale $of$ equipment that had cost $$78,000,$ yielding $a$ $$8,700$ gain.

$e.$ Prepald Expenses and Wages Payable relate $to$ Other Expenses $on$ the Income statement.

$f.$ All purchases and sales $of$ inventory are $on$ credit.

Requirement

General

General

Trial Balance

Direct Method

Indirect

Journal

Ledger

Method

Prepare the operating activities section $of$ the statement $of$ cash flows using the indirect method. Enter reductions $to$ net cash provided $by$ operating activities $as$ negative values.

Unadjusted

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