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 $125,100 152,000 114,000 218,000 (63,520) $545, 580 $142,200 133,000 123,500 114,000 (33,000) $479, 700 Balance Sheet Assets Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Total assets Liabilities: Accounts payable Salaries and Wages Payable Notes payable, long-term Stockholders' Equity: Common stock Retained earnings Total liabilities and stockholders' equity Income Statement Sales Cost of goods sold Depreciation expense Other expenses Net income $ 19,000 3,800 95,000 $ 22,800 1,900 114,000 172,000 255, 780 $545,580 152,000 189,000 $479,700 $560,000 290,000 30,520 140,000 $ 99,480 Other information from the company's records includes the following: Bought equipment for cash, $104,000. Paid $19,000 on long-term note payable. Issued new shares of common stock for $20,000 cash. Cash dividends of $32,700 were declared and paid to stockholders. Accounts Payable arose from inventory purchases on credit. Income tax expense ($24,870) and interest expense ($5,700) were paid in full at the end of both years and are included in Other Expenses. WICKERSHAM BROTHERS Inc. Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Net income $ 99,480 Adjustments to reconcile net income to net cash provided by operating activities: Changes in current assets and current liabilites: $ 99,480 Cash Flows from Investing Activities: $ 0 Cash Flows from Financing Activities: $ 0 Cash and Cash Equivalents, beginning of period Cash and Cash Equivalents, end of period Supplemental Disclosures: $ 0 Cash Equivalents Cash Overage Cash paid for income tax $ 99,480 Cash paid for interest Cash Shortage $ 0 Cash Flows from Financing Activities