Other information from the companys records includes the following: a. Bought equipment for cash, $89,000. b. Paid $16,500 on long-term note payable. c. Issued new shares of common stock for $20,000 cash. d. Cash dividends of $28,200 were declared and paid to stockholders. e. Accounts Payable arose from inventory purchases on credit. f. Income tax expense ($19,670) and interest expense ($4,950) were paid in full at the end of both years and are included in Other Expenses. Required: a. Prepare the statement of cash flows using the indirect method. Include any supplemental disclosures. (Enter any deductions and cash outflows as a negative value.)

The management team of Wickersham 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 $104,100 $122,700 115,500 107,250 99,000 (54,320)(28,000) 132,000 99,000 188,000 Total assets $468,780 $416,450 Liabilities Accounts payable Salaries and Wages Payable Notes payable, long-term $ 16,500 $ 19,800 1,650 99,000 3,300 82,500 Stockholders' Equity Common stock Retained earnings 152,000 132,000 164,000 214,480 Total liabilities and stockholders' equity $468,780 $416,450 Income Statement Sales Cost of goods sold Depreciation expense Other expenses $460,000 240,000 26,320 115,000 Net income $ 78,680