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 Notes payable, long-term Merchandise inventory Property and equipment Less: Accumulated depreciation Total assets Liabilities: Accounts payable Salaries and Wages Payable Stockholders' Equity: Current Year Prior Year $ 57,900 $ 79,800 88,000 66,000 122,000 77,000 (34,080) $299,820 $11,000 2,200 55,000 71,500 66,000 (17,000) $277,300 $ 13,200 1,100 66,000 Common stock 108,000 88,000 Retained earnings 123,620 109,000 Total liabilities and stockholders' equity $299,820 $277,300 Income Statement Sales $240,000 Cost of goods sold 130,000 Depreciation expense Other expenses Net income 17,080 60,000 $ 32,920 Other information from the company's records includes the following: Bought equipment for cash, $56,000. Paid $11,000 on long-term note payable. Issued new shares of common stock for $20,000 cash. Cash dividends of $18,300 were declared and paid to stockholders. Accounts Payable arose from inventory purchases on credit. Income tax expense ($8,230) and interest expense ($3,300) 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.) 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: $ 0 $ 0 12 Quiz i 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: Saved $ 0