indirect method

BOOK Statement of Cash Flows-Indirect Method The comparative balance sheet of Whitman Co. at December 31, 2012 and 2041, is as follows: Dec. 31, 2012 Dec 31, 2011 Assets Cash $ 820,220 Accounts receivable (net) 631,360 Inventories 966,060 Prepaid expenses 28,910 Land 395,550 $760,680 692,220 1,049,740 24,340 261,670 1,209,480 (342,310) 425,980 (117,140) $3,964,660 745,470 Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) (319,490) 376,540 (131,600) $3,513,020 $ 753,290 $ 794,910 0 Bonds payable Common stock, 520 par 222,020 261,000 97,000 Paid-in capital: Excess of issue price over par common stock 626,000 462,000 2,102,350 2,159,110 Retained earnings Total liabilities and stockholders' equity $3,964,660 $3,513,020 The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 2012 are as follows: ACCOUNT Land ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance 395,550 Apr. 20 Realized $124,500 cash from sale 133,880 261,670 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance 745,470 Apr. 20Acquired for cash 464.010 1,209,480 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 319,490 Jan. 1 Balance Dec. 31 Depreciation for year 22,820 342,310 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan, 1 Balance 376,540 41,400 335,140 Jan. 26 Discarded, no salvage Aug, 11 Purchased for cash 90,840 425,980 ACCOUNT Accumulated Depreciation-Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 131.600 Date Trem Debit Credit Debit Credit 2012 Jan. 1 Balance 131,600 41,400 90,200 Jan. 26 Equipment discarded Dec. 31 Depreciation for year 26,940 117,140 ACCOUNT Bonds Payable ACCOUNT NO Balance Date Item Debit Credit Debit Credit 2012 May 1 Issued 20-year bonds 222,020 222,020 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance 97,000 164,000 261,000 Dec. 7 issued 3,200 shares of common stock for $40 per share ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance 462,000 626,000 164,000 Dec. 7 issued 8,200 shares of common stock for $40 per share ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012