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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 Merchandise inventory Property and equipment Less: Accumulated depreciation 104,000 78,000 146,000 74,700 95,400 91,000 84,500 78,000 41,440) (21,000) Total assets $361,260 $327,900 Liabilities Accounts payable Salaries and Wages Payable Notes payable, long-term 13,000 15,600 1,300 78,000 2,600 65,000 Stockholders' Equity: Common stock Retained earnings 124,000 104,000 156,660 129,000 Total liabilities and stockholders' equity $361,260 $327,900 Income Statement Sales Cost of goods sold Depreciation expense Other expenses $320,000 170,000 20,440 80,000 Net income $ 49,560 Other information from the company's records includes the following a. Bought equipment for cash, $68,000 b. Paid $13,000 on long-term note payable c. Issued new shares of common stock for $20,000 cash. d. Cash dividends of $21,900 were declared and paid to stockholders e. Accounts Payable arose from inventory purchases on credit f. Income tax expense ($12,390) and interest expense ($3,900) were paid in full at the end of both years and are included in Other Expenses

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