Statement of Cash Flows-Indirect Method The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Cash Assets Dec. 31, 2012 Dec. 31, 20Y1 $ 620,490 $668,610 Accounts receivable (net) Inventories Prepaid expenses Land Buildings Accumulated depreciation-buildings 564,650 515,010 856,280 788,020. 19,860 23,580 213,450 322,650 986,580 608,080 (279,220) (260,610) Equipment Accumulated depreciation-equipment Total assets 347,470) 307,140 (95,560) (107,340) $3,234,000 $2,865,140 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 614,460 $648,410 Bonds payable 181,100 0 Common stock, $20 par 213,000 79,000 Paid-in capital: Excess of issue price over par-common stock 511,000 377,000 Paid-in capital: Excess of issue price over par-common stock 511,000 377,000 Retained earnings Total liabilities and stockholders' equity 1,714,440 $3,234,000 1,760,730 $2,865,140 The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 20Y2 are as follows: ACCOUNT Land Date ACCOUNT NO. Balance Item Debit Credit Debit Credit 2012 Jan. 1 Balance Apr. 20 Realized $101,600 cash from sale ACCOUNT Buildings Date 2012 Jan, 1 Balance 322,650 109,200 213,450 ACCOUNT NO. Item Debit Credit Debit Apr. 20 Acquired for cash ACCOUNT Accumulated Depreciation-Buildings Balance 608,080 378,500 986,580 Credit ACCOUNT NO. Balance ACCOUNT Accumulated Depreciation-Buildings Date 2012 ACCOUNT NO. Balance Item Debit Credit Debit Jan. 1 Balance Dec. 31 Depreciation for year ACCOUNT Equipment Date 2012 18,610 Credit 260,610 279,220 ACCOUNT NO. Balance Item Debit Credit Debit Credit Jan. 1 Balance Jan. 26 Discarded, no salvage Aug. 11 Purchased for cash ACCOUNT Accumulated Depreciation-Equipment Date 2012 Jan. 1 Balance Item 307,140 33,800 273,340 74,130 347,470 ACCOUNT NO. Debit Credit Debit Balance Credit 107,340 ACCOUNT Accumulated Depreciation-Equipment Date 2012 Jan. 1 Balance Item ACCOUNT NO. Debit Credit Debit Balance Credit 107,340 Jan. 26 Equipment discarded 33,800 73,540 Dec. 31 Depreciation for year 22,020 95,560 ACCOUNT Bonds Payable I ACCOUNT NO. Balance Date 2012 Item Debit Credit Debit Credit May 1 Issued 15-year bonds ACCOUNT Common Stock, $20 par Date 2012 181,100 181,100 ACCOUNT NO. Balance Credit Item Debit Credit Debit Jan. 1 Balance Dec. 7 Issued 6,700 shares of common) 79,000 134,000 213,000 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Credit Item Debit Credit Debit Date 2012 Jan. 1 Balance Dec. 7 Issued 6,700 shares of common stock for $40 per share ACCOUNT Paid-in Capital in Excess of Par-Common Stock Date 2012 Item Jan. 1 Balance Dec. 7 Issued 6,700 shares of common stock for $40 per share ACCOUNT Retained Earnings Date 2012 79,000 134,000 213,000 I ACCOUNT NO. Balance Debit Credit Debit Credit 377,000 134,000 511,000 ACCOUNT NO. Balance Item Debit Credit Debit Credit Previous Next ACCOUNT Retained Earnings Date 2012 Jan. 1 Balance Item Debit Credit Debit Dec. 31 Net loss Dec. 31 Cash dividends Required: 22,290 24,000 ACCOUNT NO. Balance Credit 1,760,730 1,738,440 1,714,440 I 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 flows, cash payments, 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: Net loss 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 Increase in inventories Decrease in prepaid expenses -25,580 X 000 00 Loss on sale of land Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Decrease in prepaid expenses Decrease in accounts payable Net cash flow used for operating activities Cash flows from (used for) investing activities: Cash from land sold Cash used for acquisition of building Cash used for purchase of equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash from issuance of bonds payable Cash from issuance of common stock Cash used for dividends 20:0000 0000 DT Net cash flow from financing activities Decrease in cash Cash at the beginning of the year Cash at the end of the year. Q O 10000