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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

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 $ 125,100 $ 142,200
Accounts receivable 152,000 133,000
Merchandise inventory 114,000 123,500
Property and equipment 218,000 114,000
Less: Accumulated depreciation (63,520 ) (33,000 )
Total assets $ 545,580 $ 479,700
Liabilities:
Accounts payable $ 19,000 $ 22,800
Salaries and Wages Payable 3,800 1,900
Notes payable, long-term 95,000 114,000
Stockholders Equity:
Common stock 172,000 152,000
Retained earnings 255,780 189,000
Total liabilities and stockholders equity $ 545,580 $

479,700

Income Statement
Sales $ 560,000
Cost of goods sold 290,000
Depreciation expense 30,520
Other expenses 140,000
Net income $ 99,480

Other information from the companys 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.

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.)

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