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 YearPrior Year ??Balance Sheet ??Assets ??Cash $50,000 $72,000 ??Accounts Receivable 80,000 70,000 ??Merchandise Inventory 60,000 65,000 ??Property and Equipment 110,000 60,000 ??Less: Accumulated Depreciation (30,000) (15,000) ??Total Assets $270,000 $252,000 ??Liabilities: ??Accounts Payable $10,000 $12,000 ??Salaries and

Question

Wages Payable  2,000     1,000   ??Notes Payable, Long-Term  50,000     60,000   ??Stockholders' Equity:            ??Common Stock  100,000     80,000   ??Retained Earnings  108,000     99,000   ??Total Liabilities and Stockholders' Equity $270,000    $252,000   ???  Current Year ?Income Statement    ?Sales$200,000  ?Cost of Goods Sold 110,000  ?Depreciation Expense 15,000  ?Other Expenses 50,000  ?Net income$25,000  ??  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 credit.• 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:Prepare a schedule summarizing operating, investing, and financing cash flows using the T-account approach.

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Answer 1