Statement of cash flows—indirect method OBJ. 2 The comparative balance sheet of Whitman Co. at December 31, 2016 and 2015, is as follows:

Dec. 31, 2016 Dec. 31, 2015 Assets Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 918,000 $ 964,800 Accounts receivable (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 828,900 761,940 Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,268,460 1,162,980 Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,340 35,100 Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315,900 479,700 Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,462,500 900,900 Accumulated depreciation—buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . (408,600) (382,320)

Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 512,280 454,680 Accumulated depreciation—equipment . . . . . . . . . . . . . . . . . . . . . . . . . . (141,300) (158,760)

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,785,480 $4,219,020 Liabilities and Stockholders’ Equity Accounts payable (merchandise creditors) . . . . . . . . . . . . . . . . . . . . . . . $ 922,500 $ 958,320 Bonds payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270,000 0 Common stock, $25 par . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317,000 117,000 Paid-in capital: Excess of issue price over par—common stock . . . . . 758,000 558,000 Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,517,980 2,585,700 Total liabilities and stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . $4,785,480 $4,219,020 The noncurrent asset, noncurrent liability, and stockholders’ equity accounts for 2016 are as follows:

ACCOUNT Land ACCOUNT NO.

Balance Date Item Debit Credit Debit Credit 2016 Balance Realized $151,200 cash from sale 1

20 Jan.

Apr.

479,700 163,800 315,900 ACCOUNT Buildings ACCOUNT NO.

Balance Date Item Debit Credit Debit Credit 2016 Balance Acquired for cash 1

20 Jan.

Apr.

900,900 561,600 1,462,500 Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.