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

Other information from the companys records includes the following:

• Bought equipment for cash, $89,000.
• Paid $16,500 on long-term note payable.
• Issued new shares of common stock for $20,000 cash.
• Cash dividends of $28,200 were declared and paid to stockholders.
• Accounts Payable arose from inventory purchases on credit.
• 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:

1. Prepare the statement of cash flows using the indirect method. Include any supplemental disclosures. (Enter any deductions and cash outflows as a negative value.)