The following financial statements and additional information are reported. Additional Information
a. A $38,800 note payable is retired at its $38,800 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 $68,600 cash. d. Received cash for the sale of equipment that had cost
$59,600, yieiding a $3,100 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.Using the
direct method, prepare the statement of cash flows for the year ended June 30,2021 . (Amounts to
be deducted should be indicated with a minus sign.).
The following financial statements and additional informatio.pdf
1. The following financial statements and additional information are reported. Additional Information
a. A $38,800 note payable is retired at its $38,800 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 $68,600 cash. d. Received cash for the sale of equipment that had cost
$59,600, yieiding a $3,100 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.Using the
direct method, prepare the statement of cash flows for the year ended June 30,2021 . (Amounts to
be deducted should be indicated with a minus sign.)
