GL1201 (Algo) - Based on Exercise 12-11 LO P2, P3, A1 Use the following financlal statements and additional information. a. A $32,000 note payable is retired at its $32,000 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 $79,000 cash. d. Recelved cash for the sale of equipment that had cost $65,000, ylelding a $5,800 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. 1. All purchases and sales of Inventory are on credit. Prepare the operating activities section of the statement of cash flows using the indirect method. reductions to net cash provided by operating activities as negative values