The management team of Wickersham Brothers Incorporated 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 Assets Cash Accounts Receivable Inventory Property and Equipment Less: Accumulated Depreciation Total assets Liabilities: Accounts Payable Salaries and Wages Payable Notes Payable, Long-Term Stockholders' Equity: Common Stock Retained Earnings Total Liabilities and Stockholders equity Income Statement Current Year Prior Year $ 83,100 $ 103,200 98,000 112,000 84,000 158,000 (45,120) $ 391,980 $ 14,000 2,800 70,000 132,000 173,180 $ 391,980 91,000 84,000 (23,000) $ 353,200 $ 16,800 1,400 $4,000 112,000 139,000 $ 353,200 Current Year Prior Year 00% llapse Balance Sheet Assets Cash Accounts Receivable Inventory Property and Equipment Less: Accumulated Depreciation Total assets Liabilities: Accounts Payable Salaries and Wages Payable Notes Payable, Long-Term Stockholders' Equity: Common Stock Retained Earnings Total Liabilities and Stockholders' equity Income Statement Sales Cost of Goods Sold Depreciation Expense Other Expenses Net Income $ 83,100 112,000 84,000 158,000 (45,120) $ 391,980 $ 14,000 2,800 70,000 132,000 173,180 $ 391,980 $360,000 190,000 22,120 90,000 $ 57,880 $ 103,200 98,000 91,000 84,000 (23,000) $ 353,200 $ 16,800 1,400 84,000 112,000 139,000 $ 353,200 Other information from the company's records includes the following: Bought equipment for cash, $74,000. Paid $14,000 on long-term note payable. Issued new shares of common stock for $20,000 cash. Cash dividends of $23,700 were declared and paid to stockholders. Accounts Payable arose from inventory purchases on credit. Income tax expense ($14,470) and interest expense ($4,200) 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.) WICKERSHAM BROTHERS INCORPORATED Statement of Cash Flows For the Year Ended December 31 < Prev 6 of 16 Next >