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 Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation $ 62,100 92,000 69,000 128,000 (35,920) $ 83,700 80,500 74,750 69,000 (18,000) Total assets $315,180 $289,950 Liabilities: Accounts payable Salaries and Wages Payable Notes payable, long-term Stockholders' Equity: Common stock Retained earnings $ 11,500 2,300 57,500 $ 13,800 1,150 69,000 112,000 131,880 92.000 114,000 Total liabilities and stockholders' equity $315,180 $289,950 Income Statement Sales Cost of goods sold Depreciation expense Other expenses $260.000 140,000 17,920 65,000 Net income $ 37,080 Other information from the company's records includes the following: a. Bought equipment for cash, $59,000. b. Paid $11,500 on long-term note payable. c. Issued new shares of common stock for $20,000 cash. d. Cash dividends of $19,200 were declared and paid to stockholders. e. Accounts Payable arose from inventory purchases on credit. f. Income tax expense ($9,270) and interest expense ($3,450) were paid in full at the end of both years and are included in Other Expenses