Statement of Cash FlowsIndirect Method

The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows:

	Dec. 31, 20Y2			Dec. 31, 20Y1
Assets
Cash	$ 709,930			$ 763,570
Accounts receivable (net)	646,040			589,240
Inventories	979,700			901,610
Prepaid expenses	22,720			26,980
Land	244,220			369,160
Buildings	1,128,790			695,730
Accumulated depreciation-buildings	(319,470)			(298,170)
Equipment	397,560			351,420
Accumulated depreciation-equipment	(109,330)			(122,820)
Total assets	$3,700,160			$3,276,720
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$ 703,030			$ 741,880
Bonds payable	207,210			0
Common stock, $20 par	244,000			90,000
Paid-in capital: Excess of issue price over par-common stock	586,000			432,000
Retained earnings	1,959,920			2,012,840
Total liabilities and stockholders' equity	$3,700,160			$3,276,720

The noncurrent asset, noncurrent liability, and stockholders equity accounts for 20Y2 are as follows:

ACCOUNT Land				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			369,160
Apr. 20	Realized $116,200 cash from sale		124,940	244,220

ACCOUNT Buildings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			695,730
Apr. 20	Acquired for cash	433,060		1,128,790

ACCOUNT Accumulated Depreciation-Buildings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				298,170
Dec. 31	Depreciation for year		21,300		319,470

ACCOUNT Equipment				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			351,420
Jan. 26	Discarded, no salvage		38,700	312,720
Aug. 11	Purchased for cash	84,840		397,560

ACCOUNT Accumulated Depreciation-Equipment				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				122,820
Jan. 26	Equipment discarded	38,700			84,120
Dec. 31	Depreciation for year		25,210		109,330

ACCOUNT Bonds Payable				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
May 1	Issued 10-year bonds		207,210		207,210

ACCOUNT Common Stock, $20 par				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				90,000
Dec. 7	Issued 7,700 shares of common stock for $40 per share		154,000		244,000

ACCOUNT Paid-in Capital in Excess of Par-Common Stock				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				432,000
Dec. 7	Issued 7,700 shares of common stock for $40 per share		154,000		586,000

ACCOUNT Retained Earnings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				2,012,840
Dec. 31	Net loss	25,480			1,987,360
Dec. 31	Cash dividends	27,440			1,959,920

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, 20Y2

Cash flows from operating activities:
DepreciationDividendsGain on sale of landLoss on sale of landNet lossRetained earnings	$- Select -
Adjustments to reconcile net loss to net cashflow from operating activities:
Decrease in accounts receivableDepreciationGain on sale of landIncrease in accounts receivableIncrease in bonds payableIncrease in common stock	- Select -
Decrease in accounts receivableDecrease in inventoriesGain on sale of landIncrease in accounts payableIncrease in prepaid expensesLoss on sale of land	- Select -
Changes in current operating assets and liabilities:
Decrease in accounts receivableDecrease in inventoriesDepreciationIncrease in accounts receivableIncrease in accumulated depreciation-buildingsIncrease in bonds payable	- Select -
Decrease in accounts receivableDecrease in bonds payableDecrease in inventoriesIncrease in accounts payableIncrease in inventoriesIncrease in land	- Select -
Decrease in inventoriesDecrease in prepaid expensesIncrease in accounts payableIncrease in accumulated depreciation-equipmentIncrease in common stockIncrease in prepaid expenses	- Select -
Decrease in accounts payableDecrease in inventoriesIncrease in accounts payableIncrease in paid-in capital in excess of par-common stockNet incomeRetained earnings	- Select -
Net cash flow used for operating activities		$fill in the blank 15
Cash flows from investing activities:
Cash received from customersCash received from gain on sale of landCash received from land soldCash received from issuance of common stockCash received from net incomeCash received from retained earnings	$- Select -
Accumulated depreciationCash paid for acquisition of buildingCash paid for bonds payableCash paid for dividendsDepreciationLoss on sale of land	- Select -
Cash from issuance of bonds payableCash from issuance of common stockCash paid for purchase of equipmentDecrease in accounts receivableIncrease in accounts payableIncrease in inventories	- Select -
Net cash flow used for investing activities		fill in the blank 22
Cash flows from financing activities:
Cash received from decrease in accounts receivableCash received from decrease in prepaid expensesCash received from issuance of bonds payableCash received from purchase of buildingCash received from purchase of equipmentCash received from sale of land	$- Select -
Cash paid for accounts payableCash paid for acquisition of buildingCash paid for issuance of common stockCash received from customersCash received from issuance of common stockCash received from sale of land	- Select -
Cash from net lossCash paid for dividendsCash paid for loss on sale of landCash paid for purchase of buildingCash paid for purchase of equipmentCash paid for retained earnings	- Select -
Net cash flow from financing activities		fill in the blank 29
Cash from issuance of bonds payableCash from issuance of common stockChange in cashDecrease in accounts receivableIncrease in accounts payableIncrease in inventories		$- Select -
Cash at the beginning of the year		fill in the blank 32
Cash at the end of the year		$fill in the blank 33