Problem 12-12A

Condensed financial data of Whispering Winds Corp. appear below.

Problem 12-12A Condensed financial data of Whispering Winds Corp. appear below. Whispering Winds Corp. Comparative Balance Sheets December 31 Assets 2019 Cash $91,400 Accounts receivable 89,000 Inventory 122,000 Investments 84,500 Equipment 251,000 Accumulated depreciation equipment (48,100) $589,800 Liabilities and Stockholders' Equity Accounts payable $58,600 Accrued expenses payable 11,200 Bonds payable 102,000 Common stock 250,000 Retained earnings 168,000 $589,800 2018 $46,900 56,200 103,000 86,200 205,000 (40,200) $457,100 $ 47,200 18,900 69,500 197,000 124,500 $457,100 Whispering Winds Corp. Income Statement For the Year Ended December 31, 2019 Sales revenue Gain on disposal of equipment $299,000 8,000 307,000 Less: Cost of goods sold Operating expenses (excluding depreciation expense) Depreciation expense Income tax expense Interest expense $98,200 13,600 48,800 7,200 2,500 170,300 $136,700 Net income Additional information: 1. Equipment costing $92,500 was purchased for cash during the year. 2. Investments were sold at cost. 3. Equipment costing $46,500 was sold for $13,600, resulting in gain of $8,000. 4. A cash dividend of $93,200 was declared and paid during the year. Prepare a worksheet for the statement of cash flows using the indirect method. Enter the reconciling items directly in the worksheet columns. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Whispering Winds Corp. Worksheet-Statement of Cash Flows Balance Sheet Accounts Debits Balance 12/31/18 Reconciling Items Debit Credit Balance 12/31/19 Cash Accounts receivable Inventory Investments Equipment Totals Credits Accumulated depreciation Equipment Accounts payable Accrued expenses payable Bonds payable Common stock Retained earnings Totals Statement of Cash Flow Effects Totals Totals