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	$	78,900		$	99,300
Accounts receivable		108,000			94,500
Merchandise inventory		81,000			87,750
Property and equipment		152,000			81,000
Less: Accumulated depreciation		(43,280	)		(22,000	)
Total assets	$	376,620		$	340,550
Liabilities:
Accounts payable	$	13,500		$	16,200
Salaries and Wages Payable		2,700			1,350
Notes payable, long-term		67,500			81,000
Stockholders Equity:
Common stock		128,000			108,000
Retained earnings		164,920			134,000
Total liabilities and stockholders equity	$	376,620		$	340,550
Income Statement
Sales	$	340,000
Cost of goods sold		180,000
Depreciation expense		21,280
Other expenses		85,000
Net income	$	53,720

Other information from the companys records includes the following:

a.	Bought equipment for cash, $71,000.
b.	Paid $13,500 on long-term note payable.
c.	Issued new shares of common stock for $20,000 cash.
d.	Cash dividends of $22,800 were declared and paid to stockholders.
e.	Accounts Payable arose from inventory purchases on credit.
f.	Income tax expense ($13,430) and interest expense ($4,050) 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.)

Statement of Cash Flows

Cash Flows from Operating Activites:
Adjustments to reconcile net income to net cash provided by operating activiies:
Changes in current assets and current liabilities:
Cash Flows from investing Activities
Cash flows from financing Activities
Cash and Cash equivalents, beginning of period:
Cash and cash equivalents, end of period
Supplemental Disclosures: