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 Current Year $ 50,000 80,000 60,000 110,000 (30,000) $ 270,000 $ 10,000 2,000 50,000 100,000 108,000 $ 270,000 $ 200,000 110,000 15,000 50,000 nnn Prior Year $ 72,000 70,000 65,000 60,000 (15,000) $ 252,000 $ 12,000 1,000 60,000 80,000 99,000 $ 252,000 A
WICKERSHAM BROTHERS INCORPORATED Statement of Cash Flows For the Year Ended December 31 \begin{tabular}{l|r|} \hline Cash Flows from Operating Activities: & \\ \hline Net income & 25,000 \\ \hline Adjustments to reconcile net income to net cash provided by operating activities: \\ \hline Depreciation Expense & \\ \hline Changes in current assets and current liabilities: & 15,000 \\ \hline Increase in Accounts Receivable & (10,000) \\ \hline Decrease in Inventory & 5,000 \\ \hline Decrease in Accounts Payable & (2,000) \\ \hline Increase in Salaries and Wages Payable & 1,000 \\ \hline & $ \\ \hline Cash Flows from Investing Activities: & 34,000 \\ \hline Additions to property, plant, and equipment & $ \\ \hline & 50,000 \\ \hline Net Cash Used in Investing Activities & 50,000 \\ \hline Cash Flows from Financing Activities: & \\ \hline \end{tabular} 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 batance sheets and income statements are summarized \begin{tabular}{|l|r|} \hline & $ \\ \hline Cash Flows from Investing Activities: & 34,000 \\ \hline Additions to property, plant, and equipment & \\ \hline & 50,000 \\ \hline Net Cash Used in Investing Activities & $ \\ \hline Cash Flows from Financing Activities: & 50,000 \\ \hline Cash proceeds from issuance of stock & $ \\ \hline Cash payments on long-term debt & (10,000) \\ \hline Cash payment of dividends & (16,000) \\ \hline & $ \\ \hline Net Cash Used in Financing Activities & (6,000) \\ \hline Net Increase in Cash and Cash Equivalents & (22,000) \\ \hline Cash and Cash Equivalents, beginning of period & 72,000 \\ \hline Cash and Cash Equivalents, end of period & $50,000 \\ \hline Supplemental Disclosures: & \\ \hline & \\ \hline \end{tabular} Other information from the company's records includes the following: - Bought equipment for cash, $50,000. - Paid $10,000 on long-term note payable. - Issued new shares of common stock for $20,000 cash. . Cash dividends of $16,000 were declared and paid to stockholders. - Accounts Payable arose from inventory purchases on creclit. - Income Tax Expense ($4,000) and Interest Expense ($3,000) 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 supplementol disclosures. (Enter any deductions and cash outflows as a negative value.) WICKERSHAM BROTHERS INCORPORATED Statement of Cash Flows For the Year Ended December 31 \begin{tabular}{l|r|} \hline Cash Flows from Operating Activities: & \\ \hline Net income & 25,000 \\ \hline Adjustments to reconcile net income to net cash provided by operating activities: \\ \hline Depreciation Expense & \\ \hline Changes in current assets and current liabilities: & 15,000 \\ \hline Increase in Accounts Receivable & (10,000) \\ \hline Decrease in Inventory & 5,000 \\ \hline Decrease in Accounts Payable & (2,000) \\ \hline Increase in Salaries and Wages Payable & 1,000 \\ \hline & $ \\ \hline Cash Flows from Investing Activities: & 34,000 \\ \hline Additions to property, plant, and equipment & $ \\ \hline & 50,000 \\ \hline Net Cash Used in Investing Activities & 50,000 \\ \hline Cash Flows from Financing Activities: & \\ \hline \end{tabular} 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 batance sheets and income statements are summarized \begin{tabular}{|l|r|} \hline & $ \\ \hline Cash Flows from Investing Activities: & 34,000 \\ \hline Additions to property, plant, and equipment & \\ \hline & 50,000 \\ \hline Net Cash Used in Investing Activities & $ \\ \hline Cash Flows from Financing Activities: & 50,000 \\ \hline Cash proceeds from issuance of stock & $ \\ \hline Cash payments on long-term debt & (10,000) \\ \hline Cash payment of dividends & (16,000) \\ \hline & $ \\ \hline Net Cash Used in Financing Activities & (6,000) \\ \hline Net Increase in Cash and Cash Equivalents & (22,000) \\ \hline Cash and Cash Equivalents, beginning of period & 72,000 \\ \hline Cash and Cash Equivalents, end of period & $50,000 \\ \hline Supplemental Disclosures: & \\ \hline & \\ \hline \end{tabular} Other information from the company's records includes the following: - Bought equipment for cash, $50,000. - Paid $10,000 on long-term note payable. - Issued new shares of common stock for $20,000 cash. . Cash dividends of $16,000 were declared and paid to stockholders. - Accounts Payable arose from inventory purchases on creclit. - Income Tax Expense ($4,000) and Interest Expense ($3,000) 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 supplementol disclosures. (Enter any deductions and cash outflows as a negative value.)
