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 $ 87,300 116,000 87,000 164,000 (46,960) $407,340 $107,100 101.5e 94,250 87.000 (24,000) $365,150 $ 14,500 Balance Sheet Assets Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation Total assets Liabilities: Accounts payable Salaries and Wages Payable Notes payable, long-tere Shareholders' Equity Coron shares Retained earnings Total liabilities and shareholders equity Income Statement Sales Cost of goods sold Depreciation expense Other expenses Niet income 2.900 72,500 $ 17,00 1,450 87.000 135,000 116,000 140,000 $365,50 5407,140 $350.000 200.000 22,960 95.000 562,000 Other information from the company's records includes the following Bought equipment for cash $77,000 Paid $14.500 on long-term note payable 34 of 35 !! Next > SUSULIUS VOUWEN Bought equipment for cash, $77,000, Paid $14.500 on long-term note payable Issued new shares of common shares for $20,000 cash. Cash dividends of $24,600 were declared and paid to shareholders Accounts Payable arose from inventory purchases on credit Income tax expense ($15,510) and Interest expense ($4,350) 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 bites Saved 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 Sunnlemental Disclosures