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 Current Year Prior Year Assets Cash $133,500 Accounts receivable $150,000 160,000 140,000 Merchandise inventory 120,000 130,000 Property and equipment 230,000 120,000 Less: Accumulated depreciation (67,200) (35,000) Total assets $576,300 $505,000 Liabilities: Accounts payable $ 20,000 $ 24,000 Salaries and Wages Payable 4,000 2,000 Notes payable, long-term 100,000 120,000 Stockholders' Equity: Common stock 180,000 160,000 Retained earnings 272,300 199,000 Total liabilities and stockholders' equity $576,300 $505,000 Income Statement Sales $600,000 Cost of goods sold 310,000 Depreciation expense 32,200 150,000 Other expenses Net income $107,800 Other information from the company's records includes the following: Bought equipment for cash, $110,000 Paid $20,000 on long-term note payable. Issued new shares of common stock for $20,000 cash. Cash dividends of $34,500 were declared and paid to stockholders. Accounts Payable arose from inventory purchases on credit. Income tax expense ($26.950) and interest expense ($6,000) were paid in full at the end of both years and are included in Other Expenses