Statement of Cash Flows ---Indirect Method The comparative balance sheet of Whitman Co. at December 31, 2012 and 2041, is as follows: Dec. 31, 20Y2 Dec. 31, 2011 Assets Cash $ 927,670 $ 1,000,290 Accounts receivable (net) 844,180 769,970 Inventories 1,280, 180 1,178,140 Prepaid expenses 29,690 35,250 Land 319,120 482,390 Buildings 1,475,000 909,120 Accumulated depreciation-buildings (417,450) (389,620) Equipment 519,500 459,200 Accumulated depreciation-equipment (142,860) (160,490) Total assets $4,835,030 $4,284,250 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 918,660 $ 969,420 Bonds payable 270,760 Common stock, $20 par 318,000 118,000 Paid-in capital: Excess of issue price over par-common stock 764,000 564,000 Retained earnings 2,563,610 2,632,830 Total liabilities and stockholders' equity $4,835,030 $4,284,250 The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 2012 are as follows: ACCOUNT Land ACCOUNT NO. 0 Balance Date Item Debit Credit Debit Credit 2012 The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 2012 are as follows: ACCOUNT Land ACCOUNT NO. Balance Debit Credit Date Item Debit Credit 20Y2 Jan. 1 Balance 482,390 319,120 Apr. 20 Realized $151,800 cash from sale 163,270 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance Apr. 20 Acquired for cash 909,120 1,475,000 565,880 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance Dec. 31 Depreciation for year 389,620 417,450 27,830 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance 459,200 eBook Calculator ACCOUNT NO. ACCOUNT Equipment Balance Credit Debit Debit Credit Date Item 2012 Jan. 1 Balance Jan. 26 Discarded, no salvage Aug. 11 Purchased for cash 50,500 459,200 408,700 519,500 110,800 ACCOUNT NO. ACCOUNT Accumulated Depreciation-Equipment Balance Item Debit Credit Date Debit Credit 160,490 20Y2 Jan. 1 Balance Jan. 26 Equipment discarded Dec. 31 Depreciation for year 50,500 109,990 142,860 32,870 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 May 1 Issued 10-year bonds 270,760 270,760 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 118,000 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Debit Credit Debit Credit Date Item 2012 Jan. 1 Balance Dec. 7 Issued 10,000 shares of common stock for $40 per share 118,000 318,000 200,000 ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Debit Credit Debit Credit Date Item 2012 Jan. 1 Balance Dec. 7 issued 10,000 shares of common stock for 540 per share 564,000 764,000 200,000 ACCOUNT Retained Earnings ACCOUNT NO Balance Credit Debit Credit Debit Date Item 2012 Jan. 1 Balance Dec. 31 Net loss Dec. 31 Cash dividends 33,330 35,890 2,632,830 2,599,500 2,563,610 Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out hows, cash payments, decreases in cash, or any negative adjustments Whitman Co eBook Calculator Print Item decreases in cash, or any negative adjustments. Whitman Co. Statement of Cash Flows For the Year Ended December 31, 2012 Cash flows from operating activities: Adjustments to reconcile net loss to net cashflow from operating activities: Changes in current operating assets and liabilities: Net cash flow used for operating activities Cash flows from investing activities: Net cash flow used for investing activities Cash flows from financing activities: Net cash flow from financing activities For the Year Ended December 31, 2012 Cash flows from operating activities: Adjustments to reconcile net loss to net cashflow from operating activities: Changes in current operating assets and liabilities: Net cash flow used for operating activities Cash flows from investing activities: Net cash flow used for investing activities Cash flows from financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year
