Question
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 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 Sales Cost of Goods Sold Depreciation Expense Other Expenses Net Income Current Year Prior Year $ 66,300 96,000 72,000 134,000 (37,760) $ 330,540 $ 12,000 2,400 60,000 116,000 140,140 $ 330,540 $ 280,000 150,000 18,760 70,000 $ 41,240 $ 87,600 84,000 78,000 72,000 (19,000) $ 302,600 $ 14,400 1,200 72,000 96,000 119,000 $ 302,600 Other information from the company's records includes the following: Bought equipment for cash, $62,000. Paid $12,000 on long-term note payable. Issued new shares of common stock for $20,000 cash. Cash dividends of $20,100 were declared and paid to stockholders. Accounts Payable arose from inventory purchases on credit. Income tax expense ($10,310) and interest expense ($3,600) were paid in full at the end of both years and are included in Other Expenses. Required:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started