Statement of Cash Flows-Indirect Method The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Cash Accounts receivable (net) Inventories Prepaid expenses Land Assets Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Total assets $ 555,940 505,910 767,200 17,790 191,240 883,940 (250,170) 311,330 (85,610) $2,897,570 Liabilities and Stockholders' Equity Dec. 31, 20Y1 $ 550,540 162,260 191,000 458,000 1,535,770 $2,897,570 $ 599,170 461,430 706,040 21,130 289,090 544,820 (233,490) 275,190 (96,180) $2,567,200 Accounts payable (merchandise creditors) Bonds payable Common stock, $20 par Paid-in capital: Excess of issue price over par-common stock Retained earnings Total liabilities and stockholders' equity The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 20Y2 are as follows: $ 580,960 0 71,000 338,000 1,577,240 $2,567,200 The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 20Y2 are as follows: ACCOUNT NO. ACCOUNT Land Date 20Y2 Jan. 1 Balance Apr. 20 Realized $91,000 cash from sale ACCOUNT Buildings Date 20Y2 Jan. 1 Balance Apr. 20 Acquired for cash Item Date Item ACCOUNT Accumulated Depreciation-Buildings ACCOUNT Equipment Item 20Y2 Jan. 1 Balance Dec. 31 Depreciation for year Debit Debit Credit 339,120 Debit Credit 97,850 Credit 16,680 Debit Balance 289,090 191,240 ACCOUNT NO. Balance Debit 544,820 883,940 Credit Debit Credit ACCOUNT NO. Balance Credit 233,490 250,170 ACCOUNT NO. Balance ACCOUNT Equipment Date 20Y2 Jan. 1 Balance Jan. 26 Discarded, no salvage Aug. 11 Purchased for cash ACCOUNT Accumulated Depreciation-Equipment Date 20Y2 Item ACCOUNT Bonds Payable Date Jan. 1 Balance Jan. 26 Equipment discarded Dec. 31 Depreciation for year 20Y2 Item Item May 1 Issued 20-year bonds ACCOUNT Common Stock, $20 par Debit 66,440 Debit Debit 30,300 Credit 30,300 Credit Credit 19,730 162,260 ACCOUNT NO. Balance Debit 275,190 244,890 311,330 ACCOUNT NO. Credit Debit Debit Balance Credit 96,180 65,880 85,610 ACCOUNT NO. Balance Credit 162,260 ACCOUNT NO. Balance ACCOUNT Common Stock, $20 par Date 20Y2 Jan. 1 Balance Dec. 7 Issued 6,000 shares of common stock for $40 per share Date ACCOUNT Paid-in Capital in Excess of Par-Common Stock 20Y2 Item Jan. 1 Balance Dec. 7 Issued 6,000 shares of common stock for $40 per share ACCOUNT Retained Earnings Date 20Y2 Item Jan. 1 Balance Dec. 31 Net loss Dec. 31 Cash dividends Item Debit Debit 19,970 21,500 Debit Credit Credit 120,000 Credit 120,000 ACCOUNT NO. Debit Balance Debit Credit 71,000 191,000 ACCOUNT NO. Balance Debit Credit Balance ACCOUNT NO. 338,000 458,000 Credit 1,577,240 1,557,270 1,535,770 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, 20Y2 Cash flows from operating activities: Adjustments to reconcile net loss to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow used for operating activities Cash flows from (used for) investing activities: Net cash flow used for investing activities Cash flows from (used for) financing activities: 100 0000 000 000 Q 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 E 10000