The management team or Wickersham Brothers lncis 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 Accounts receivable Merchandise inventory Property and equipment Less: Accumulated depreciation $ 95,700 124,000 93,000 176,000 50,640 $438,060 S 114,900 108,500 100,750 93,000 26.000 391,150 Total assets Liabilities Accounts payable Salaries and Wages Payable Notes payable, long-term $ 15,500 S 18,600 1,550 93.000 77,500 Stockholders' Equity Common stock Retained earnings 144,000 197,960 $438,060 124,000 154,000 S 391,150 Total liabilities and stockholders' equity Income Statement Sales Cost of goods sold Depreciation expense Other expenses Net income $420,000 220,000 24,640 $ 70,360 Other information from the company's records includes the following Bought equipment for cash, $83,000 Paid $15,500 on long-term note payable . Issued new shares of common stock for $20,000 cash. Cash dividends or $26,400 were declared and paid to stockholders. Accounts Payable arose from inventory purchases on credit. - Income tax expense ($17,590) and interest expense (S4,650) were paid in full at the end of both years and are included in Other Expenses