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 $112,500 140,000 105,000 200,000 (58,000) $499,500 $130,500 122,500 113.750 105,000 (30,000) $441,750 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 $ 17,500 3,500 87,500 $ 21,000 1.750 105,000 160,000 231,000 $499,500 140.000 174,000 $441,750 $500,000 260,000 28,000 125.000 $$7,000 Other information from the company's records includes the following: Bought equipment for cash, $95.000 Paid $17.500 on long-term note payable. Issued new shares of common stock for $20,000 cash Cash dividends of $30,000 were declared and paid to stockholders. Accounts Payable arose from inventory purchases on credit Income tax expense ($21,750) and interest expense ($5,250) 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.) 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, and of period Supplemental Disclosures