Seved The management team of Wickersham Brothers Incorporated 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 Balance Sheet Assets Cash 235 Accounts Receivable Current Year Prior Year $133,500 $ 150,000 160,000 140,000 120,000 230,000 Less: Accumulated Depreciation (67,200) $ 576,300 Inventory Property and Equipment Total assets Liabilities: Accounts Payable Salaries and Mages Payable Notes Payable, Long-Tern Stockholders' Equity: Common Stock Retained Earnings Total Liabilities and Stockholders equity Income Statement Sales Cost of Goods Sold Depreciation Expense Other Expenses Net Income $ 20,000 4,000 100,000 180,000 272,300 $ 576,300 $600,000 310,000 32,200 150,000 $107,000 130,000 120,000 (35,000) $ 505,000 $ 24,000 2,000 120,000 160,000 199,000 5 505,000 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 ($26,950) and interest expense ($6,000) were paid in full at the end of both years and are included in Other Expenses 8 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.) 00:42:12 WICKERSHAM BROTHERS INCORPORATED Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities Net income Adjustments to reconcile net income to net cash provided by operating activities Depreciation Expense Changes in current assets and current abilites Increase in Accounts Receivable Decrease in Inventory Decrease in Accounts Payable Increase in Salaries and Wages Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Additions to property, plant, and equipment Net Cash Used in Financing Activities Cash Flows from Financing Activities Cash payments on long-term deb Cash and Cash Equivalents, beginning of period Cash and Cash Equivalents, end of period. Supplemental Disclosures $ 01 $ 0 $ 0 $ 0