Additional information a $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. the only changes affecting retained earnings are net income and cash dividends paid. new equipment is acquired for $57,600 cash. received cash for the sale of equipment that had cost $48,600, yielding a $2,000 gain. prepaid expenses and wages payable relate to other expenses on the income statement. all purchases and sales of inventory are on credit. exercise 16-11 part 1 required: (1) prepare a statement of cash flows for the year ended june 30, 2017, using the indirect method. (amounts to be deducted should be indicated with a minus sign.)