Statement of Cash Flows-Indirect Method The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 2041, is as follows: Dec 31, 2012 Dec. 31, 2011 Assets Cash $ 779,470 $ 840,590 Accounts receivable (net) 709,320 646,960 Inventories 1,075,670 989,930 Prepaid expenses 24,940 29,620 Land 268,140 405,320 Buildings 1,239,360 763,880 Accumulated depreciation-buildings (350,760) (327,380) Equipment 436,500 385,840 Accumulated depreciation-equipment (120,040) (134,850) Total assets $4,062,600 $3,599,910 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 771,890 $814,550 Bonds payable 227,510 0 Common stock, $20 par 267,000 99,000 Paid-in capital: Excess of issue price over par-common stock 642,000 474,000 Retained earnings 2,154,200 2,212,360 0 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 771,890 $814,550 Bonds payable 227,510 Common stock, $20 par 267,000 99,000 Pald-in capital: Excess of issue price over par-common stock 642,000 474,000 Retained earnings 2,154,200 2,212,360 Total liabilities and stockholders' equity $4,062,600 $3,599,910 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 Jan. 1 Balance Apr. 20 Realized $127,600 cash from sale 405,320 137,180 268,140 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance 763,880 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance Apr. 20 Acquired for cash 763,880 1,239,360 475,480 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance Dec 31 Depreciation for year 327,380 350,760 23,380 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance Jan. 26 Discarded, no salvage 385,840 42,400 343,440 1. In ACA Aug. 11 Purchased for cash 93,060 436,500 ACCOUNT Accumulated Depreciation-Equipment ACCOUNT NO. Balance Debit Credit Debit Credit Date Item 20Y2 Jan. 1 Balance Jan. 26 Equipment discarded Dec. 31 Depreciation for year 134,850 42,400 92,450 120,040 27,590 ACCOUNT Bonds Payable ACCOUNT NO. Balance Debit Credit Date Item Debit Credit 2012 May 1 Issued 10-year bonds 227,510 227,510 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 l Balance 99.000 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance Dec. 7 Issued 8,400 shares of common stock for $40 per share 99,000 267,000 168,000 ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance Dec. 7 Issued 8,400 shares of common stock for $40 per share 474,000 642,000 168,000 ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 2,212,360 ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 2,212,360 Dec. 31 Net loss 28,000 2,184,360 Dec. 31 Cash dividends 30,160 2,154,200 Required: Prepare a statement of cash flows, using the Indirect method of presenting cash flows from operating activities. Use the minus sign 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 2.212,360 X Adjustments to reconelle net loss to net cash flow from operating activities: Depreciation 55,620 X Changes in current operating assets and liabilities: Increase in accounts receivable 7 Whitman Co. Statement of Cash Flows For the Year Ended December 31, 20Y2 Cash flows from operating activities: Net loss Adjustments to reconcile net loss to net cash flow from operating activities: Depreciation 2,212,360 X 55,620 X 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: 169,600 X Net cash flow used for investing activities Cash flows from (used for) financing activities: 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: $ 169,600 X Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year b)
