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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 Balance Sheet Assets Cash Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation $133,500 $150,000 160,000 140,000 120,000 130,000 230,000 120,000 (67.200) (35.000) Total assets $576,300 $505,000 Liabilities Accounts payable Salaries and Wages Payable Notes payable, longterm 20,000 $ 24.000 2,000 100,000 120,000 4.000 Stockholders' Equity Common stock Retained earnings 180,000160,000 272,300 199,000 Total liabilities and stockholders' equity $576,300 $505,000 Income Statement Sales Cost of goods sold Depreciation expense Other expenses $600,000 310,000 32,200 50,000 Net income 107,800 Other information from the company's records includes the following a Bought equipment for cash, $110,000 b Paid $20,000 on long-term note payable c. Issued new shares of common stock for $20,000 cash. d. Cash dividends of $34,500 were declared and paid to stockholders e Accounts Payable arose from inventory purchases on credit f. 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
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