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

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Other information from the companys records includes the following:

• Bought equipment for cash, $53,000.
• Paid $10,500 on long-term note payable.
• Issued new shares of common stock for $20,000 cash.
• Cash dividends of $17,400 were declared and paid to stockholders.
• Accounts Payable arose from inventory purchases on credit.
• Income tax expense ($7,190) and interest expense ($3,150) were paid in full at the end of both years and are included in Other Expenses.

Required:

1. Prepare the statement of cash flows using the indirect method. Include any supplemental disclosures.

Prior Year Current Year Balance Sheet Assets $ 75,900 Cash $53,700 84,000 63,000 116,000 (32,240) Accounts receivable Merchandise inventory 73,500 68,250 63,000 (16,000) Property and equipment Less: Accumulated depreciation $284,460 $264,650 Total assets Liabilities: $ 10,500 2,100 52,500 $ 12,600 1,050 63,000 Accounts payable Salaries and Wages Payable Notes payable, long-term Stockholders' Equity: 84,000 104,000 Common stock 104,000 115,360 Retained earnings $284,460 $264,650 Total liabilities and stockholders' equity Income Statement $220,000 120,000 16,240 55,000 $ 28,760 Cost of goods sold Depreciation expense Other expenses Net income 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 Eauivalents heainning of neriod