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	$	62,100			$	83,700
Accounts receivable		92,000				80,500
Merchandise inventory		69,000				74,750
Property and equipment		128,000				69,000
Less: Accumulated depreciation		(35,920	)			(18,000	)
Total assets	$	315,180			$	289,950
Liabilities:
Accounts payable	$	11,500			$	13,800
Salaries and Wages Payable		2,300				1,150
Notes payable, long-term		57,500				69,000
Stockholders Equity:
Common stock		112,000				92,000
Retained earnings		131,880				114,000
Total liabilities and stockholders equity	$	315,180			$	289,950
Income Statement
Sales	$	260,000
Cost of goods sold		140,000
Depreciation expense		17,920
Other expenses		65,000
Net income	$	37,080

Other information from the companys records includes the following:

• Bought equipment for cash, $59,000.
• Paid $11,500 on long-term note payable.
• Issued new shares of common stock for $20,000 cash.
• Cash dividends of $19,200 were declared and paid to stockholders.
• Accounts Payable arose from inventory purchases on credit.
• Income tax expense ($9,270) and interest expense ($3,450) were paid in full at the end of both years and are included in Other Expenses.

Required:

1. Prepare the statement of cash flows using the indirect method. Include any supplemental disclosures. (Enter any deductions and cash outflows as a negative value.)

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: 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