Answer:
Wickersham Brothers Inc.
Statement of Cash Flows, indirect method:
Operating Activities:
Adjustment of Net Income  $70,360
Add Depreciation                   24,640
Cash from operations                          $95,000
Working capital adjustments:
Accounts receivable                            -$15,500
Inventory                                                   7,750
Accounts Payable                                  -$3,100
Salaries & Wages Payable                        1,550
Income Tax expense                           -$17,590
Interest expense                                  -$4,650
Cash flow from operating activities   $64,460
Financing Activities:
Long-term note payable -$15,500
Common Stock               $20,000
Dividend                         -$26,400
Cash flow from financing activities  -$21,900
Investing Activities:
Equipment                                        -$83,000
Net Cash flows                                 ($40,440)
Explanation:
a) Balance Sheet
Assets:                              Current Year       Prior Year
Cash                                     $95,700            $114,900
Accounts receivable            124,000             108,500
Merchandise inventory        93,000             100,750
Property and equipment    176,000               93,000
Less: Accumulated
depreciation                       (50,640)             (26,000)
Total assets                    $438,060             $391,150
Liabilities:
Accounts payable            $15,500               $18,600
Salaries & Wages Payable   3,100                   1,550
Notes payable, long-term 77,500                93,000
Stockholders' Equity:
Common stock               144,000               124,000
Retained earnings         197,960                154,000
Total Liabilities and
Stockholders' Equity $438,060               $391,150
b) Income Statement
Sales                          $420,000
Cost of goods sold     220,000
Depreciation expense  24,640
Other expenses          105,000
Net income                 $70,360
c) Operating Activities:
Accounts receivable -$15,500
Inventory 7,750
Accounts Payable -$3,100
Salaries & Wages Payable 1,550
Income Tax expense -$17,590
Interest expense -$4,650
Net Income                   $70,360
Add Depreciation           24,640
Cash from operations $95,000
d) Financing Activities:
Long-term note payable -$15,500
Common Stock $20,000
Dividend -$26,400
e) Investing Activities:
Equipment -$83,000
f) The indirect method is one of the two methods for preparing the Statement of Cash Flows.  This method takes the net income and adjusts non-cash flow expenses, like depreciation.  It is prepared through a reconciliation of balances, of inflows and outflows during two periods.