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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 $ 83,100 112,000 84,000 158,000 (45,120 $391,988 $103,200 98,000 91,800 84.ee (23,000 $353,200 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-term Shareholders' Equity: Common shares Retained earnings Total liabilities and shareholders' equity Income Statement Sales Cost of goods sold Depreciation expense Other expenses Net Income $ 14,00 2,800 70,000 $ 16,800 1,400 84,000 132, eee 173, 180 $391,se 112,000 139, eee $353,200 $360,000 190,00 22,120 90,00 $ 57,880 27 Other information from the company's records includes the following Bought equipment for cash, $74.000 Paid $14,000 on long-term note payable Issued new shares of common shares for $20,000 cash Cash dividends of $23,700 were declared and paid to shareholders, Accounts Payable arose from Inventory purchases on credit Income tax expense ($14.470) and interest expense (84.200) 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 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 liabilitos Cash Flows from Investing Activities Saved $ 0 Cash Flows from Investing Activities: $ 0 Cash Flows from Financing Activities: $ 0 Cash and Cash Equivalents, beginning of period Cash and Cash Equivalents, end of period Supplemental Disclosures: $ 0
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