Statement of Cash Flows-Indirect Method The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Assets Cash Accounts receivable (net) Inventories Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Total assets Dec. 31, 20Y2 Dec. 31, 20Y1 $ 714,720 $ 770,820 650,400 593,220 986,310 907,690 22,870 27,160 245,860 371,650 1,136,400 700,430 (321,620) (300,180) 400,240 353,790 (110,070) (123,650) $3,725,110 $3,300,930 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 707,770 $746,880 Bonds payable 208,610 0 Common stock, $20 par 245,000 91,000 Paid-in capital: Excess of issue price over par-common stock 589,000 435,000 Retained earnings 1,974,730 2,028,050 Total liabilities and stockholders' equity $3,725,110 $3,300,930 The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 20Y2 are as follows: ACCOUNT Land ACCOUNT NO. Balance Item Debit Credit Debit Date 20Y2 Jan. 1 Balance Apr. 20 Realized $117,000 cash from sale ACCOUNT Buildings Date 20Y2 371,650 125,790 245,860 ACCOUNT NO. Balance Item Debit Credit Debit Jan. 1 Balance Apr. 20 Acquired for cash ACCOUNT Accumulated Depreciation-Buildings Date 20Y2 Item Jan. 1 Balance Dec. 31 Depreciation for year 435,970 700,430 1,136,400 Credit Credit ACCOUNT NO. Balance Debit Credit Debit Credit 300,180 21,440 321,620 ACCOUNT Equipment Date 20Y2 ACCOUNT NO. Balance Item Debit Credit Debit Jan. 1 Balance Jan. 26 Discarded, no salvage Aug. 11 Purchased for cash ACCOUNT Accumulated Depreciation-Equipment Date 20Y2 Jan. 1 Balance Item Jan. 26 Equipment discarded Dec. 31 Depreciation for year ACCOUNT Bonds Payable Date 20Y2 353,790 38,900 314,890 85,350 400,240 Credit ACCOUNT NO. Balance Debit Credit Debit Credit 38,900 25,320 123,650 84,750 110,070 ACCOUNT NO. Balance Item Debit Credit Debit Credit May 1 Issued 20-year bonds 208,610 208,610 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Item Debit Credit Debit Date 20Y2 Jan. 1 Balance Dec. 7 Issued 7,700 shares of common stock for $40 per share ACCOUNT Paid-in Capital in Excess of Par-Common Stock Date 20Y2 Item Jan. 1 Balance Dec. 7 Issued 7,700 shares of common stock for $40 per share ACCOUNT Retained Earnings Date Credit 91,000 154,000 245,000 ACCOUNT NO. Balance Debit Credit Debit Credit 435,000 154,000 589,000 ACCOUNT NO. Balance Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance Dec. 31 Net loss 25,670 Dec. 31 Cash dividends 27,650 2,028,050 2,002,380 1,974,730 Required: 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: Adjustments to reconcile net loss to net cashflow from operating activities: Changes in current operating assets and liabilities: Net cash flow used for operating activities Cash flows from investing activities: Net cash flow used for investing activities Cash flows from financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year