5.00 points The management team of Wickersham Brothers Inc. is preparing its ann

Question

5.00 points 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 $133,500 $150,000 160,000 140,000 120,000 130,000 230,000 120,000 (67,200) (35,000) Cash Merchandise Inventory Property and Equipment Less: Accumulated Depreciation Total Assets $576,300 $505,000 Liabilities: Accounts Payable Salaries and Wages Payable Notes Payable, Long-Term $ 20,000 24,000 2,000 100,000 120,000 4,000 Stockholders' Equity: Common Stock Retained Earnings 180,000 60,000 272,300 199,000 Total Liabilities and Stockholders' Equity $576,300 $505,000 Current Year Income Statement Sales Cost of Goods Sold Depreciation Expense Other Expenses $600,000 310,000 32,200 150,000 Net income $107,800

Explanation / Answer

Schedule summarizing operating, investing and financing activities is as shown below:

Cash Operating Net Income 107,800 Depreciation Expense 32,200 20,000 Account Receivable Inventory 10,000 4,000 Accounts Payable Salaries and Wages payable 2,000 152,000 24,000 Net cash flow provided by operating activities 128,000 Investing 110,000 Purchase of Equipment Net cash flow used by investing activities -110,000 Financing Issue Stock 20,000 20,000 Repay long-term debt 34,500 pay dividends Net cash flow used by financing activities -34,500 Net decrease in cash -16,500 Beginning balance 150,000 Ending balance 133,500

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