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. Current Year Prior Year $ 120,900 148,000 111,000 212,000 (61,680) $ 530,220 $ 138,300 129,500 120, 250 111,000 (32,000) $ 467, 050 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' $ 18,500 3,700 92,500 $ 22,200 1,850 111,000 168,000 247,520 $ 530,220 148,000 184,000 $ 467,050 equity Income Statement Sales Cost of Goods Sold Depreciation Expense Other Expenses Net Income $ 540,000 280,000 29,680 135,000 $ 95,320 Other information from the company's records includes the following: Bought equipment for cash, $101,000. Paid $18,500 on long-term note payable. Issued new shares of common stock for $20,000 cash. Cash dividends of $31,800 were declared and paid to stockholders. Accounts Payable arose from inventory purchases on credit. Income tax expense ($23,830) and interest expense ($5,550) were paid in full at the end of both years and are included in Other Expenses. WICKERSHAM BROTHERS INCORPORATED Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Expense Changes in current assets and current liabilities: Increase in Accounts Receivable Decrease in Inventory Decrease in Accounts Payable Increase in Salaries and Wages Payable $ 0 Net Cash Provided by Operating Activities Cash Flows from Investing Activities: Additions to property, plant, and equipment $ 0 Net Cash Used in Investing Activities Cash Flows from Financing Activities: Cash payments on long-term debt Cash payment of dividends $ 0 Net Cash Used in Financing Activities Net Decrease in Cash and Cash Equivalents Cash and Cash Equivalents, beginning of period Cash and Cash Equivalents, end of period Supplemental Disclosures: $ 0