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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. Prior Year Current Year Balance Sheet Assets $150,000 140,000 130,000 120,000 (35,000) $133,500 160,000 120,000 230,000 (67,200) Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation $505,000 $576,300 Total assets Liabilities: $ 24,000 2,000 120,000 $ 20,000 4,000 100,000 Accounts payable Salaries and Wages Payable Notes payable, long-term Stockholders' Equity: Common stock 160,000 199,000 18, 272,300 Retained earnings Total liabilities and stockholders' equity $576,300 $505,000 Income Statement $600, 310,000 32,200 150,000 Sales Cost of goods sold Depreciation expense Other expenses $107,800 Net income Other information from the company's records includes the following: Bought equipment for cash, $110,000. Paid $20,000 on long-term note payable. Issued new shares of common stock for $20,000 cash. Cash dividends of $34,500 were declared and paid to stockholders. Accounts Payable arose from inventory purchases on credit. Income tax expense ($26,9500) and interest expense ($6,000) 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.) WICKERSHAM BROTHERS Inc. Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to reconcile net income to net cash provided by operating activities: 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.) WICKERSHAM BROTHERS Inc. Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Adjustments to reconcile net income to net cash provided by operating activities: Changes in current assets and current liabilites: Cash Flows from Investing Activities: Cash Flows from Financing Activities: Cash and Cash Equivalents, beginning of period Cash and Cash Equivalents, end of period Supplemental Disclosures