Statement of Cash Flows-Indirect Method The comparative balance sheet of Whitman Co. at December 31, 2012 and 20Y1, is as follows: Cash Assets Dec. 31, 20Y2 $ 752,920 Dec. 31, 20Y1 $808,410 Accounts receivable (net) Inventories Prepaid expenses Land Buildings Accumulated depreciation-buildings 685,160 1,039,030 624,920 956,210 24,090 28,610 259,000 391,520 1,197,140 737,860 (338,810) (316,230) Equipment 421,640 372,700 Accumulated depreciation-equipment (115,950) (130,260) Total assets $3,924,220 $3,473,740 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 745,600 $786,800 Bonds payable 219,760 0 Common stock, $20 par 260,000 96,000 Paid-in capital: Excess of issue price over par-common stock 622,000 458,000 Retained earnings 2,076,860 2,132,940 Total liabilities and stockholders' equity $3,924,220 $3,473,740 The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 2012 are as follows: ACCOUNT Land ACCOUNT NO. Date 20Y2 Jan. 1 Balance Balance Item Debit Credit Debit Credit 391,520 ACCOUNT Land ACCOUNT NO. Balance Item Debit Credit Debit Date 20Y2 Jan. 1 Balance Apr. 20 Realized $123,200 cash from sale ACCOUNT Buildings 391,520 132,520 259,000 ACCOUNT NO. Balance Credit Date 20Y2 Jan. 1 Balance Item Debit Credit Debit Apr. 20 Acquired for cash ACCOUNT Accumulated Depreciation-Buildings 459,280 737,860 1,197,140 Credit ACCOUNT NO. Date 20Y2 Item Jan. 1 Balance Dec. 31 Depreciation for year ACCOUNT Equipment Date 20Y2 Balance Debit Credit Debit Credit 22,580 316,230 338,810 ACCOUNT NO. Balance Item Debit Credit Debit Credit Jan. 1 Balance Jan. 26 Discarded, no salvage Aug. 11 Purchased for cash 372,700 41,000 331,700 89,940 421,640 Date 20Y2 Jan. 1 Balance Balance Item Debit Credit Debit Credit Jan. 26 Equipment discarded Dec. 31 Depreciation for year ACCOUNT Bonds Payable 41,000 26,690 130,260 89,260 115,950 ACCOUNT NO. Balance Item Debit Credit Debit Credit Date 2012 May 1 Issued 15-year bonds ACCOUNT Common Stock, $20 par Date 2012 Jan. 1 Balance 219,760 219,760 ACCOUNT NO. Balance Item Debit Credit Debit Credit Dec. 7 Issued 8,200 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 8,200 shares of common stock for $40 per share 96,000 164,000 260,000 ACCOUNT NO. Balance Debit Credit Debit Credit 458,000 164,000 622,000 ACCOUNT Retained Earnings Date 20Y2 Jan. 1 Balance Item Debit Credit Debit Dec. 31 Net loss Dec. 31 Cash dividends Required: 27,000 29,080 ACCOUNT NO. Balance Credit 2,132,940 2,105,940 2,076,860 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, 20Y2 Cash flows from operating activities: Net loss 44,360 Adjustments to reconcile net loss to net cash flow from operating activities: Depreciation 54.890 Loss on sale of land 13,420 Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Decrease in prepaid expenses -65,760 -105,840 6.050 36.110 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 150,820 -561,600 Cash used for purchase of equipment Net cash flow used for investing activities -1,039,650 -133.350 -514,740 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, 20Y2 Cash flows from operating activities: Net loss 44,360 Adjustments to reconcile net loss to net cash flow from operating activities: Depreciation 54,890 Loss on sale of land 13,420 Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Decrease in prepaid expenses -65,760 -105,840 < 6,050 -36,110 Decrease in accounts payable Net cash flow used for operating activities Cash flows from (used for) investing activities: Cash from land sold 150,820 Cash used for acquisition of building -561.600 Cash used for purchase of equipment -1,039,650 Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash from issuance of bonds payable -133,350 -514.740 270,000 Cash from issuance of common stock 408,000 Cash used for dividends -32,440 Net cash flow from financing activities 645.560 Increase in cash $ 46,890 Cash at the beginning of the year 965.310 Cash at the end of the year 918,420