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: Dec 31, 2012 Dec 31, 2011 Assets 3 Cash $918,000.00 $964,800.00 Accounts receivable (net) 828,900.00 761,940,00 5 Inventories 1,162,980,00 1,268,460.00 29,340.00 6 Prepaid expenses 35,100.00 7 Land 315,900.00 479,700.00 # Buildings 900,900.00 (382,320.00) Accumulated depreciation-buildings 10 Equipment 1,462,500.00 (408,600.00) 512,280.00 (141,300.00) 54785,480.00 454,680.00 11 Accumulated depreciation equipment (158,760.00) $4,219,020.00 12 Total assets Liabilities and Stockholders' Equity 14 Accounts payable (merchandise creditors) $922,500.00 5958,320.00 15 Bonds payable 270,000.00 0.00 270,000.00 0.00 Instructions 15 Bonds payable 16 Common stock, $25 par 17 Paid-in capital: Excess of issue price over par-common stock 317,000.00 117,000.00 758,000.00 558,000.00 18 Retained earnings 2,517,980.00 2,585,700.00 Total liabilities and stockholders' equity $4,785,480.00 $4,219,020.00 The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 20Y2 are as follows: ACCOUNT Land ACCOUNT NO. Balance Debit Credit Item Debit Credit Date 2012 Jan. 1 Balance 479,700 Apr. 20 Realized $151,200 cash from sale 163,800 315,900 ACCOUNT Buildings ACCOUNT NO. Balance Instructions ACCOUNT NO. Balance Debit Credit Debit Credit Item Date 20Y2 Jan. 1 Balance 900,900 Apr. 20 Acquired for cash 561,600 1,462,500 ACCOUNT Accumulated Depreciation Buildings ACCOUNT NO. Balance Debit Item Debit Credit Credit Date 20Y2 Jan. 1 Balance 382,320 Dec. 31 Depreciation for year 26,280 408,600 ACCOUNT Equipment ACCOUNT NO. Balance Debit Credit Debit Credit Date Item 20Y2 Che Mar Tor ACCOUNT Equipment ACCOUNT NO. Balance Credit Debit Credit Item Debit Date 20Y2 Jan. 1 Balance 454,680 26 Discarded, no salvage 46,800 407,880 Aug. 11 Purchased for cash 104,400 512,280 ACCOUNT Accumulated Depreciation -Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit 20Y2 ooit Credit Jan. 1 Balance 158,760 26 Equipment discarded 46,800 111,960 Dec. 31 Depreciation for year 29,340 141,300 ACCOUNT Bonds Payable ACCOUNT NO. Instructions ACCOUNT Bonds Payable ACCOUNT NO. Balance Debit Item Debit Credit Credit Date 20Y2 May 1 Issued 20-year bonds 270,000 270,000 ACCOUNT Common Stock $25 par ACCOUNT NO. Balance Debit Date Item Debit Credit Credit 20Y2 Jan. 1 Balance 117,000 Dec. 7 Issued 8,000 shares of common stock for $50 per share 200,000 317,000 ACCOUNT Pald-In Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2042 Jan. 1 Balance 558,000 ACCOUNT Pald-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Debit Date Debit Credit Credit 2042 Jan. 1 Balance 558,000 Dec. 7 Issued 8,000 shares of common stock for $50 per share 200,000 758,000 ACCOUNT Retained Earnings ACCOUNT NO. Balance Debit Item Debit Credit Credit Date 20Y2 Jan. 1 Balance 2,585,700 Dec. 31 Net loss 2,550,380 31 Cash dividends 32,400 2,517,980 Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amou the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate net loss, cash outflows, Check My Work 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 Gain on sale of land Increase in accounts payable Previous Labels and Amount Descriptions opi UUIGUI For the Year Ended December 31, 20Y2 Gain on 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 Previous Statement of Cash Flows Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions lis the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicato net loss, cash outflows, cash payments. adjustments. Whitman Co Statement of Cash Flows (Label) 1 Cash flows from operating activities: Net income Adjustments to reconcile net loss to net cash flow from operating activities: Changes in current operating assets and liabilities: Check My Work Statement of Cash Flows 15 Cash flows from investing activities 19 Cash flows from financing activities 13 Cash at the beginning of the year Cash at the end of the year Check My Work