Required information

Exercise $16-12($Algo$)$ Indirect: Preparing statement of cash flows LO P$2,$ P$3,$ A$1$

$[$The following information applies to the questions displayed below.$]$

The following financial statements and additional information are reported.

Additional Information

a$.$ A $$30,000$ notes payable is retired at its $$30,000$ 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 $$82,600$ cash.

d$.$ Received cash for the sale of equipment that had cost $$73,600,$ yielding a $$4,500$ gain.

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

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

Exercise $16-12($Algo$)$ Part $1$

Required:

$(1)$ Prepare a statement of cash flows using the indirect method for the year ended June $30,2021.$

Note: Amounts to be deducted should be indicated with a minus sign.