Statement of cash flows-indirect method Instructions Labels and Amount Descriptions Statement of Cash Flows Instructions The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: 2 3 Cash Dec. 31, 2012 Dec. 31, 20Y1 Assets $918,330.00 $965,220.00 4 Accounts receivable (net) 828,620.00 761,010.00 5 Inventories 1,268,630.00 1,162,990.00 6 Prepaid expenses 7 Land Buildings Accumulated depreciation-buildings 30,290.00 35,390.00 315,080.00 478,880.00 1,462,320.00 899,910.00 (408,210.00) (382,220.00) 10 Equipment 511,480.00 454,920.00 11 Accumulated depreciation-equipment (140,580.00) (159,440.00) 12 Total assets $4,785,960.00 $4,216,660.00 13 Liabilities and Stockholders' Equity 14 Accounts payable (merchandise creditors) $923,090.00 $958,100.00 Instructions Labels and Amount Descriptions Statement of Cash Flows Instructions 13 Liabilities and Stockholders' Equity 14 Accounts payable (merchandise creditors) $923,090.00 $958,100.00 15 Bonds payable 269,000.00 0.00 16 Common stock, $25 par 325,500.00 118,000.00 17 Paid-in capital: Excess of issue price over par-common stock 766,500.00 559,000.00 18 Retained earnings 2,501,870.00 2,581,560.00 19 Total liabilities and stockholders' equity $4,785,960.00 $4,216,660.00 The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 20Y2 are as follows: ACCOUNT Land Date 20Y2 ACCOUNT NO. Balance Item Debit Credit Debit Credit Jan. 1 Balance 478,880 Apr. 20 Realized $150,210 cash from sale 163,800 315,080 Instructions ACCOUNT Buildings ACCOUNT NO. Balance Date Item: Debit Credit Debit Credit 20Y2 Jan. 1 Balance 899,910 1,462,320 Apr. 20 Acquired for cash 562,410 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 382,220 Dec. 31 Depreciation for year 25,990 408,210 ACCOUNT Equipment ACCOUNT NO. Balance Instructions ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 454,920 26 Discarded, no salvage 47,120 407,800 Aug. 11 Purchased for cash 103,680 511,480 ACCOUNT Accumulated Depreciation-Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 26 Equipment discarded 47,120 Dec. 31 Depreciation for year ACCOUNT Bonds Payable 159,440 112,320 28,260 140,580 atement of cash flows-indirect method Instructions Labels and Amount Descriptions Statement of Cash Flows Instructions ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 May 1 Issued 20-year bonds. 269,000 269,000 ACCOUNT Common Stock $25 par Date 20Y2 ACCOUNT NO. Balance Item Debit Credit Debit Credit Jan. 1 Balance 118,000 Dec. 7 Issued 8,300 shares of common stock for $50 per share 207,500 325,500 ACCOUNT Paid-In Capital in Excess of Par-Common Stock Date Item SAVE ACCOUNT NO. Debit Credit Balance Debit Credit rect method Instructions Labels and Amount Descriptions Statement of Cash Flows Instructions ACCOUNT Paid-In Capital in Excess of Par-Common Stock Date 20Y2 ACCOUNT NO. Balance Item Debit Credit Debit Credit Jan. 1 Balance 559,000 Dec. 7 Issued 8,300 shares of common stock for $50 per share. 207,500 766,500 ACCOUNT Retained Earnings ACCOUNT NO. Balance Date 20Y2 Item Debit Credit Debit Credit Jan. 1 Balance 2,581,560 Dec. 31 Net loss 47,830 2,533,730 31 Cash dividends 31,860 2,501,870 Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities Refer to the Labels and Amount Labels and Amount Descriptions Statement of Cash Flows Labels and Amount Descriptions Labels and Amount Descriptions Cash paid for acquisition of building Cash paid for dividends Cash paid for merchandise Cash paid for purchase of equipment Cash received from customers Cash received from issuance of bonds payable Cash received from issuance of common stock Cash received from land sold Change in cash December 31, 20Y2 Decrease in accounts payable Decrease in accounts receivable Decrease in inventories Decrease in prepaid expenses Decrease in salaries payable Depreciation For the Year Ended December 31, 20Y2 Gain on sale of investments Instructions ndirect method Labels and Amount Descriptions Statement of Cash F Labels and Amount Descriptions Gall Of Sale of investments Gain on sale of land Increase in accounts payable Increase in accounts receivable Increase in inventories Increase in prepaid expenses Increase in salaries payable Issuance of common stock for acquisition of building Issuance of common stock for purchase of equipment Issuance of common stock to retire bonds Loss on sale of investments Loss on sale of land Net cash flow from financing activities Net cash flow from investing activities Net cash flow from operating activities Net cash flow used for financing activities Net cash flow used for investing activities Net cash flow used for operating activities Net income Net loss G Check My Work 3 more Check My Work uses remaining. scriptions Statement of Cash Flows 1 Cash flows from operating activities: 2 Net loss 3 4 Whitman Co. Statement of Cash Flows For the Year Ended December 31, 2012 Adjustments to reconcile net loss to net cash flow from operating activities: Depreciation Loss on sale of land Changes in current operating assets and liabilities: Increase in accounts receivable Gain on sale of investments 9 Decrease in prepaid expenses 10 Decrease in accounts payable 11 12 13 Cash flows from investing activities: Labels and Amount Descriptions Statement of Cash Flows 10 11 Decrease in accounts payable 12 13 Cash flows from investing activities: 14 15 16 17 18 19 Cash flows from financing activities: 20 21 22 22 23 24 25 Cash at the beginning of the year 26 Cash at the end of the year