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The management team of Wickersham Brothers Inc. is preparing its annual financial statements. The statements are complete except Hor the statement of cash flows. The

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The management team of Wickersham Brothers Inc. is preparing its annual financial statements. The statements are complete except Hor the statement of cash flows. The completed comparative balance sheets and income statements are summarized Current Year Prior Year Balance Sheet Assets Cash $50,000 $ 72,000 Accounts receivable 30,000 70,000 Merchandise inventory 60,000 65,000 Property and equipment 110,000 60.000 Less: Accumulated depreciation 20.000) (25.000) Total assets $270,000 5252,000 Liabilities Accounts payable $ 10,000 $ 12,000 Salaries and ages Payable 2,000 1,000 Notes payable, long-term 50,000 60,000 Stockholders' Equity Common stock 100,000 10,000 Retained earnings 100,000 99.000 Total liabilities and stockholders equity $270,000 5252.000 Income Statement Sales $200,000 Cost of goods sold 110,000 Depreciation expense 15,000 Other expenses 50,000 Net Income $ 25,000 . Other information from the company's records includes the following: Bought equipment for cash. $50.000 Paid $10,000 on long-term note payable. Issued new shares of common stock for $20,000 cash Cash dividends of $16,000 were declared and paid to stockholders. Accounts Payable arose from inventory purchases on credit Income tax expense (54.000) and interest expense ($3,000) were paid in full at the end of both years and are included in Other Expenses 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 liabilites 0 Cash Flows from investing Activities. $ 0 Cash Flows from Financing Activities: $ Cash and Cash Equivalents, beginning of period Cash and Cash Equivalents, end of period Supplemental Disclosures: 0

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