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 Current Year Prior Year $199,500 $150,000 160,000 140,000 120,000 190,000 30,000 120,000 (67,200) (55,000) 5 $76,000 $505,000 $40,000 $24,000 4,000 2,000 Notes payable, long-term 100,000 120,000 Stockholders' Equity: Common stock 150,000 160,000 Retained earnings 272,900 12,000 Total liabilities and stockholders' equity $576,500 $505,000 Income Statement Sales $600,000 Cost of goods sold Depreciation expense other expenses Net income $10,000 22,200 150,000 $107,500