Statement of Cash Flows-Indirect Method The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 2041, is as follows: Dec. 31, 20Y2 Dec. 31, 2011 Assets Cash $ 755,180 $ 811,860 687,210 Accounts receivable (net) Inventories 626,800 959,080 1,042,150 Prepaid expenses 24,170 28,700 Land 392,690 259,780 1,200,740 (339,830) Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment 740,080 (317,180) 373,810 (130,650) 422,900 (116,300) Total assets $3,936,000 $3,485,190 $ 747,840 $ 789,160 0 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Bonds payable Common stock, $20 par Paid-in capital: Excess of issue price over par-common stock Retained earnings Total liabilities and stockholders' equity 96,000 220,420 260,000 623,000 2,084,740 459,000 2,141,030 $3,936,000 $3,485,190 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 392,690 Jan. 1 Balance Apr. 20 Realized $123,600 cash from sale 132,910 259,780 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance 740,080 1,200,740 Apr. 20 | Acquired for cash 460,660 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance 317,180 Dec. 31 Depreciation for year 22,650 339,830 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 373,810 41,100 332,710 Jan. 26 Discarded, no salvage Aug. 11 Purchased for cash 90,190 422,900 ACCOUNT Accumulated Depreciation-Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 130,650 Jan. 26 Equipment discarded 41,100 89,550 116,300 Dec. 31 Depreciation for year 26,750 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 May 1 Issued 15-year bonds 220,420 220,420 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 96,000 164,000 260,000 Dec. 7 Issued 8,200 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 2012 Jan. 1 Balance 459,000 623,000 164,000 Dec. 7 Issued 8,200 shares of common stock for $40 per share ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance Dec. 31 Net loss 27,100 29,190 2,141,030 2,113,930 2,084,740 Dec. 31Cash dividends 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, 20Y2 Cash flows from operating activities: Net loss -27,100 Adjustments to reconcile net loss to net cashflow 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 Decrease in accounts payable Net cash flow used for operating activities Cash flows from investing activities: Cash received from land sold Cash paid for acquisition of building Cash paid for purchase of equipment Net cash flow used for investing activities Cash flows from financing activities: Cash received from issuance of bonds payablay Cash received from issuance of common stock Cash paid for dividends Net cash flow from financing activities Change in cash 000 000 0001 00 Cash at the beginning of the year Cash at the end of the year
