Statement of Cash Flows The comparative balance sheet of Whitman Co. at December 31, 2012 and 2041, is as follows: Dec 31, 2012 Dec. 31, 20Y1 Assets Cash $ 549.750 $ 589,740 500,270 456,290 Accounts receivable (net) Inventories 758,650 698,180 17,590 20,890 Prepaid expenses Land 189,110 285,870 Buildings 874,100 538,760 Accumulated depreciation-buildings (247,390) (230,900) 307,860 272,130 Equipment Accumulated depreciation-equipment (84,660) (95,110) Total assets $2,865,280 $2,535,850 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 544,400 $ 574,490 Bonds payable 160,460 0 Common stock, $20 par 190,000 70,000 Excess of paid-in capital over par 454,000 334,000 Retained earnings 1,516,420 1,557,360 Total liabilities and stockholders' equity $2,865,280 $2 535,850 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 20Y2 Jan. 1 Balance 285,870 Apr. 20 Realized $90,000 cash from sale 96,760 189,110 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 538,760 Apr. 20 Acquired for cash 335,340 874,100 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 230,900 Dec. 31 Depreciation for year 16,490 247,390 ACCOUNT Equipment ACCOUNT NO. Balance Debi Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 272,130 Jan. 26 Discarded, no salvage 29,900 242, 230 Aug. 11 Purchased for cash 65,630 307,860 ACCOUNT Accumulated Depreciation Equipment ACCOUNT NO. Balance Date Item Debit credit Credit Debit Credit 20Y2 Jan. 1 Balance 95,110 Jan. 26 Equipment discarded 29,900 65,210 Dec. 31 Depreciation for year 19,450 84,660 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 May 1 Issued 10-year bonds 160,460 160,460 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 70,000 120,000 190,000 Dec. 7 Issued 6,000 shares of common stock for $40 per share ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 334,000 120.000 454,000 Dec. 7 Issued 6,000 shares of common stock for $40 per share ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 1,557,360 Dec. 31 Net loss 19,710 1,537,650 Dec. 31 Cash dividends 21,230 1,516,420 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. Statement of Cash Flows For the Year Ended December 31, 20Y2 Cash flows from (used for) operating activities: Net loss 19,710 x Adjustments to reconcile net loss to net cash flows from (used for) operating activities: Depreciation 35,940 Loss on sale of land 6,760 Changes in current operating assets and liabilities: Increase in accounts receivable 43,980 Increase in inventories 60,470 X Decrease in prepaid expenses 3,300V Decrease in accounts payable 30,090 X 108,250 X Net cash flows used for operating activities Cash flows from (used for) investing activities: Cash received from sale of land 90,000 Cash paid for acquisition of building 335,340 Cash paid for purchase of equipment 65,630 310,970 X Net cash flows used for investing activities Cash flows from (used for) financing activities: Cash received from issuing bonds payable 160,460 Cash received from issuing common stock 240,000 Cash dividends 21 230 X 379.230 V Net cash flows from financing activities Net decrease in cash x 39,990 X Cash balance, January 1, 2012 589,740 Cash balance, December 31, 20Y2 $ 549,750