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. Balance Sheet Assets Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Total assets Liabilities: Accounts payable Salaries and Wages Payable Stockholders' Equity: Current Year Prior Year $ 53,700 $ 75,900 73,500 84,000 63,000 116,000 68,250 63,000 (32,240) $284,460 $ 10,500 2,100 (16,000) $264,650 $ 12,600 1,050 63,000 Notes payable, long-term 52,500 Common stock 104,000 84,000 Retained earnings 115,360 104,000 Total liabilities and stockholders' equity $284,460 $264,650 Income Statement Sales $220,000 Cost of goods sold 120,000 Depreciation expense Other expenses Net income 16,240 55,000 $ 28,760 Other information from the company's records includes the following: Bought equipment for cash, $53,000. Paid $10,500 on long-term note payable. Issued new shares of common stock for $20,000 cash. Cash dividends of $17,400 were declared and paid to stockholders. Accounts Payable arose from inventory purchases on credit. Income tax expense ($7,190) and interest expense ($3,150) were paid in full at the end of both years and are included in Other Expenses. 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, end of period Supplemental Disclosures