Question

1. Wickersham Brothers, Inc. reported the following information:

	2018	2017
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 Wages Payable	2,000	1,000
Bonds 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
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 2018 records includes the following:

• No equipment was sold during the year.
• $10,000 worth of Bonds payable were repurchased from investors during the year (i.e., retired).

On the next page, prepare Wickersham’s Statement of Cash Flows in good form for 2018.

Answer 1