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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 $116,700 144,000 108,000 206,000 (59,840) $514,860 $134,400 126,000 117,000 108,000 (31,000) $454,400 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 Stockholders' Equity: Common Stock Retained Earnings Total Liabilities and Stockholders' Equity $ 18,000 3,600 90,000 $ 21,600 1,800 108,000 164,000 239, 260 $514,860 144,000 179,000 $454,400 Current Year Income Statement Sales Cost of Goods Sold Depreciation Expense Other Expenses Net income $520,000 270,000 28,840 130,000 $ 91,160 Other information from the company's records includes the following: Bought equipment for cash, $98,000. Paid $18,000 on long-term note payable. Issued new shares of common stock for $20,000 cash. Cash dividends of $30,900 were declared and paid to stockholders. Accounts Payable arose from inventory purchases on credit. Income Tax Expense ($4,000) and Interest Expense ($3,000) were paid in full at the end of both years and are included in Other Expenses. Required: Prepare a schedule summarizing operating, investing, and financing cash flows using the T-account approach. Cash Operating 0 Investing Financing 0
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