Statement of Cash Flows-Indirect Method The comparative balance sheet of Whitman Co. at December 31, 2012 and 20Y1, is as follows: Assets Dec. 31, 20Y2 Dec. 31, 201 Cash Accounts receivable (net) Inventories Prepaid expenses $571,550 $ 614,650 520,110 788,740 474,390 725,870 18,290 21,720 Land Buildings 196,610 297,210 908,760 560,120 Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Total assets (257,200) (240,050) 320,070 282,920 (88,020) (98,880) $2,978,910 $2,637,950 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $565,990 $597,270 166,820 0 Bonds payable 197,000 73,000 Common stock, $20 par Paid-in capital: Excess of issue price over par-common stock 472,000 348,000 1,577,100 1,619,680 Retained earnings Previous Net Total liabilities and stockholders' equity $2,978,910 $2,637,950 The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 2012 are as follows: ACCOUNT Land ACCOUNT NO. Date 2012 Item Jan, 1 Balance Apr. 20 Realized $93,600 cash from sale ACCOUNT Buildings Date 2012 Balance Debit Credit Debit Credit 297,210. 100,600 196,610 ACCOUNT NO. Balance Item Debit Credit Debit Credit Jan, 1 Balance Apr. 20 Acquired for cash ACCOUNT Accumulated Depreciation-Buildings Item Date 2012 348,640 560,120 908,760 ACCOUNT NO. Balance Credit Debit Credit Debit Previous Next ACCOUNT Accumulated Depreciation-Buildings Date 2012 Item Jan. 1 Balance Dec. 31 Depreciation for year ACCOUNT Equipment Date 2012 ACCOUNT NO. Balance Debit Credit Debit 17,150 Credit 240,050 257,200 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 20Y2 Jan. 1 Balance Item 282,920 31,100 251,820 68,250 320,070 ACCOUNT NO. Balance Debit Credit Debit Credit 98,880. ACCOUNT Accumulated Depreciation-Equipment Date 20Y2 Jan. 1 Balance Item ACCOUNT NO. Balance Credit Debit Credit Debit Jan. 26 Equipment discarded 31,100 Dec. 31 Depreciation for year 20,240 98,880. 67,780 88,020 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 May 1 Issued 10-year bonds ACCOUNT Common Stock, $20 par 166,820 166,820 ACCOUNT NO. Balance Item Debit Credit Debit Credit Date 2012 Jan. 1 Balance Dec. 7 Issued 6,200 shares of common stock for $40 per share 73,000 124,000 197,000 ACCOUNT Paid-in Capital in Excess of Par-Common Stock Date 2012 Jan. 1 Balance Item Dec. 7 Issued 6,200 shares of common stock for $40 per share: ACCOUNT Retained Earnings Date 2012 Jan. 1 Balance ACCOUNT NO. Balance Debit Credit Debit Credit 348,000 124,000 472,000 Item Debit Credit Debit Dec. 31 Net loss 20,500 Dec. 31 Cash dividends 22,080 ACCOUNT NO. Balance Credit 1,619,680 1,599,180 1,577,100 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 outflows, 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 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 000000000 0 New 0000 Q O 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 Net cash flow from financing activities Decrease in cash Cash at the beginning of the year Cash at the end of the year 0000