16.8

Statement of Cash Flows The comparative balance sheet of Whitman Co. at December 31, 2012 and 2041, is as follows: Dec. 31, Dec. 31, 2012 2011 Assets Cash Accounts receivable (net) Inventories Prepaid expenses Land $ 860,210 782,790 1,187,090 27,530 295,910 1,367,730 (387,090) $ 926,440 713,970 1,092,470 32,690 447,310 843,010 (361,290) 425,800 481,720 (132,470) $4,483,420 (148,820) $3,971,580 Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Bonds payable Common stock, $20 par Excess of paid-in capital over par Retained earnings Total liabilities and stockholders' equity $ 898,920 0 $ 851,850 251,070 295,000 709,000 2,376,500 109,000 523,000 2,440,660 $4,483,420 $3,971,580 The noncurrent asset, noncurrent liability, and stockholders equit ACCOUNT Land ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance 447,310 295,910 Apr. 20 Realized $140,800 cash from sale 151,400 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance Apr. 20Acquired for cash 843,010 1,367,730 524,720 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance 361,290 387,090 Dec. 31 Depreciation for year 25,800 ACCOUNT NO. ACCOUNT Equipment Balance Item Date Debit Credit Debit Credit 20Y2 Jan. 1 Balance 425,800 46,800 379,000 Jan. 26 Discarded, no salvage Aug. 11 Purchased for cash 102,720 481,720 ACCOUNT NO. ACCOUNT Accumulated Depreciation-Equipment Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance Jan. 26 Equipment discarded Dec. 31 Depreciation for year 46,800 148,820 102,020 132,470 30,450 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 May 1 Issued 15-year bonds 251,070 251,070 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 109,000 Jan. 1 Balance Dec. 7 Issued 9,300 shares of common stock for $40 per share 186,000 295,000 ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 523,000 Jan. 1 Balance Dec. 7 Issued 9,300 shares of common stock for $40 per share 186,000 709,000 ACCOUNT Retained Earnings ACCOUNT NO Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 2,440,660 Dec. 31 Net loss 30,890 2,409,770 ner 21 Irach Avidande 22 27 276 500 Dec 31 Net loss 30,890 2,409,770 Dec. 31 Cash dividends 33,270 2,376,500 Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments, Whitman Co. Statement of Cash Flows For the Year Ended December 31, 2012 Cash flows from (used for) operating activities: -30.90 Adjustments to reconcile net loss to net cash flows from (used for) operating activities: Depreciation 25,00 X Gain on sale of land 30,450 X Changes in current operating assets and liabilities: Decrease in inventories R.AZ Decrease in bonds payable Decrease in prepaid expenses Decrease in accounts payable Gain on sale of land I Net cash flows used for operating activities Cash flows from (used for) investing activities: Cash received from sale of land Cash paid for acquisition of building Cash paid for purchase of equipment 0 Net cash nows used for investing activities Net cash flows used for operating activities Cash flows from (used for investing activities: Cash received from sale of land Cash paid for acquisition of building Cash paid for purchase of equipment Net cash flows used for investing activities Cash flows from (used for) financing activities: Cash received from decrease in prepaid expenses Cash paid for acquisition of building Cash dividends Net cash flows from financing activities Net decrease in cash Cash balance, January 1, 2012 372,000 X 251,070 X -33.270 549,800 -66,230 926.440 Cash balance, December 31, 2012 860,210