The Management Team of Wickersham Brothers Inc

question 175

Essay

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. • 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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Definitions:

Manage For Profits

A business strategy focused on increasing efficiency and reducing costs in order to maximize the financial gains of an organization.

Clear-Cut Options

Choices or alternatives that are straightforward, well-defined, and easy to understand or select between.

Organization's Value Systems

The core principles and ethical standards that guide the behavior, decisions, and practices within an organization.

Individual Character

The set of moral and mental qualities and beliefs that distinguishes one person from others, often influencing behavior and decision-making.