80.2K

Verified Solution

Link Copied!

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 Accounts Receivable Merchandise Inventory Property and Equipment Less: Accumulated Depreciation Total Assets Liabilities: Accounts Payable Salaries and whes Payable Notes Payable, Long-Tern Stockholders' Equity con stock Retained Earnings Total Lilities and stockholders Equity $125,00 152,00 114,000 220,000 (520) 5545,500 $142,200 13,000 12), 500 114,000 (2.000) 5479,00 $19.000 3,60 95.000 5 27,000 1,900 114,00 152.000 172,000 255,00 55455 1429,700 Incon Statement Sales cost of Goods told Depreciation Expense Other Expenses Het incon current Year 5560,000 290,000 30,520 140,000 599.40 Current Year Income Statement Sales Cost of Goods Sold Depreciation Expense other Expenses Net income $560,000 290,000 30,520 140.000 $99,480 Other information from the company's records includes the following Bought equipment for cash, $104,000 Paid $19,000 on long-term note payable Issued new shares of common stock for $20,000 cash Cash dividends of $32.700 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 Cast Operating Investing

Answer & Explanation Solved by verified expert

See Answer