Statement of Cash Flows

The comparative balance sheet of Whitman Co$.$ at December $31,20$Y$2$ and $20$Y$1,$ is as follows:

Dec. $31,20$Y$2$ Dec. $31,20$Y$1$

Assets

Cash $ $751,230$ $ $809,970$

Accounts receivable $($net$)683,620623,520$

Inventories $1,036,700954,060$

Prepaid expenses $24,04028,550$

Land $258,420390,640$

Buildings $1,194,460736,210$

Accumulated depreciation$-$buildings $(338,050)(315,520)$

Equipment $420,690371,860$

Accumulated depreciation$-$equipment $(115,690)(129,960)$

Total assets $$3,915,420$ $$3,469,330$

Liabilities and Stockholders' Equity

Accounts payable $($merchandise creditors$)$ $ $743,930$ $ $785,040$

Bonds payable $219,2600$

Common stock, $$20$ par $257,00095,000$

Excess of paid$-$in capital over par $619,000457,000$

Retained earnings $2,076,2302,132,290$

Total liabilities and stockholders$$ equity $$3,915,420$ $$3,469,330$

The noncurrent asset, noncurrent liability, and stockholders' equity accounts for $20$Y$2$ are as follows:

ACCOUNT Land ACCOUNT NO$.$

Balance

Date Item Debit Credit Debit Credit

$20$Y$2$

Jan. $1$ Balance $390,640$

Apr. $20$ Realized $$123,000$ cash from sale $132,220258,420$

ACCOUNT Buildings ACCOUNT NO$.$

Balance

Date Item Debit Credit Debit Credit

$20$Y$2$

Jan. $1$ Balance $736,210$

Apr. $20$ Acquired for cash $458,2501,194,460$

ACCOUNT Accumulated Depreciation$-$Buildings ACCOUNT NO$.$

Balance

Date Item Debit Credit Debit Credit

$20$Y$2$

Jan. $1$ Balance $315,520$

Dec. $31$ Depreciation for year $22,530338,050$

ACCOUNT Equipment ACCOUNT NO$.$

Balance

Date Item Debit Credit Debit Credit

$20$Y$2$

Jan. $1$ Balance $371,860$

Jan. $26$ Discarded, no salvage $40,900330,960$

Aug. $11$ Purchased for cash $89,730420,690$

ACCOUNT Accumulated Depreciation$-$Equipment ACCOUNT NO$.$

Balance

Date Item Debit Credit Debit Credit

$20$Y$2$

Jan. $1$ Balance $129,960$

Jan. $26$ Equipment discarded $40,90089,060$

Dec. $31$ Depreciation for year $26,630115,690$

ACCOUNT Bonds Payable ACCOUNT NO$.$

Balance

Date Item Debit Credit Debit Credit

$20$Y$2$

May $1$ Issued $15-$year bonds $219,260219,260$

ACCOUNT Common Stock, $$20$ par ACCOUNT NO$.$

Balance

Date Item Debit Credit Debit Credit

$20$Y$2$

Jan. $1$ Balance $95,000$

Dec. $7$ Issued $8,100$ shares of common

stock for $$40$ per share $162,000257,000$

ACCOUNT Paid$-$in Capital in Excess of Par$-$Common Stock ACCOUNT NO$.$

Balance

Date Item Debit Credit Debit Credit

$20$Y$2$

Jan. $1$ Balance $457,000$

Dec. $7$ Issued $8,100$ shares of common

stock for $$40$ per share $162,000619,000$

ACCOUNT Retained Earnings ACCOUNT NO$.$

Balance

Date Item Debit Credit Debit Credit

$20$Y$2$

Jan. $1$ Balance $2,132,290$

Dec. $31$ Net loss $26,9902,105,300$

Dec. $31$ Cash dividends $29,0702,076,230$

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 $31,20$Y$2$

Cash flows from $($used for$)$ operating activities: blank

Net loss

$Net loss

Adjustments to reconcile net loss to net cash flows from $($used for$)$ operating activities:

Depreciation

Depreciation

Loss on sale of land

Loss on sale of land

Changes in current operating assets and liabilities: blank

Increase in accounts receivable

Increase in accounts receivable

Increase in inventories

Increase in inventories

Decrease in prepaid expenses

Decrease in prepaid expenses

Decrease in accounts payable

Decrease in accounts payable

Net cash flows used for operating activities blank $fill in the blank $15$

Cash flows from $($used for$)$ investing activities: blank

Cash received from sale of land

$Cash received from sale of land

Cash paid for acquisition of building

Cash paid for acquisition of building

Cash paid for purchase of equipment

Cash paid for purchase of equipment

Net cash flows used for investing activities blank fill in the blank $22$

Cash flows from $($used for$)$ financing activities: blank

Cash received from issuing bonds payable

$Cash received from issuing bonds payable

Cash received from issuing common stock

Cash received from issuing common stock

Cash dividends

Cash dividends

Net cash flows from financing activities blank fill in the blank $29$

Net decrease in cash

blank $Net decrease in cash

Cash balance, January $1,20$Y$2$ blank fill in the blank $32$

Cash balance, December $31,20$Y$2$ blank $