12. The management team of Wickerham Brothers Inc. is preparing its annual financial statements. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statements are summarized. Current Year Prior Year Balance Sheet Assets Cash Accounts Receivable Merchandise Inventory Property and Equipment Less Accumulated Depreciation Total Assets 50,000 80,000 60,000 110,000 -30,000 270,000 72,000 70,000 65,000 60,000 -25,000 242,000 10,000 2000 50000 12,000 1000 60000 Liabilities Accounts Payable Salaries and Wages Payable Notes Payable, log-term Stockholder's Equity Common Stock Retain Earnings Total Liabilities and Stockholder's Equity 100000 108000 270,000 80000 99000 252,000 Income Statement Sales Cost Of Goods Sold Depreciation Expense Other expenses Net Income 200000 110000 15000 50000 25000 Bought equipment for cash, $50,000 Paid $10,000 on long term note payable Issued new shares of common stock for $20,000 cash Cash dividends of $16,000 were declared and paid to stockholders Accounts Payable arose from inventory purchases on credit Income Tax Expense ($4,000) and Interest Expense ($3,000) were paid in full at the end of both years and are included in Other Expenses