Question: help me answer this question, please and thank you. Western Environmental Inc. Comparative Balance Sheet Information June 30 2020 2019 Cash $ 92,360 $ 51,080


Western Environmental Inc. Comparative Balance Sheet Information June 30 2020 2019 Cash $ 92,360 $ 51,080 Accounts receivable (net) 103,000 75,800 Inventory 80,230 116,230 Prepaid expenses 6,550 6,310 Equipment 163,000 151,000 Accumulated depreciation 35, eee 19,000 Accounts payable 32,600 39,800 Wages payable 9,800 20,600 Income taxes payable 2,950 4,390 Notes payable (long-term) 55,000 91,000 Common shares 283,000 223,000 Retained earnings 26,790 2,550 $793,000 489,200 $312,800 Western Environmental Inc. Income Statement For Year Ended June 30, 2020 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense $ 70,390 Other expenses 80,470 Total operating expenses Profit from operations Gain on sale of equipment Profit before taxes Income taxes Profit 150,860 $161,940 3,800 $165,740 61,940 $103,800 Required: 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 (List any deduction in cash and cash outflows as negative amounts.) a. A note is retired at carrying value b. The only changes affecting retained earnings during 2020 are profit and cash dividends pald. c. New equipment is acquired during 2020 for $74,590 d. The profit on sale of equipment costing $62,590 during 2020 is $3,800. e. Prepaid expenses and wages expense affect other expenses on the income statement f. All sales and purchases of merchandise were on credit WESTERN ENVIRONMENTAL INC. Statement of Cash Flows For Year Ended June 30, 2020 Cash flows from operating activities Adjustments to reconcile profit to net cash provided by operating activities: $ $ 0 Cash flows from investing activities: 0 0 Cash flows from financing activities: 0 $
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
