Statement of Cash Flows-Indirect Method The comparative balance sheet of Whitman Co. at December 31, 2012 and 2041, is as follows: Dec. 31, 2012 Dec. 31, 2011 Assets $ 696,130 $ 750,810 633,480 577,790 960,660 884,090 22,280 26,450 361,990 239,470 1,106,850 682,210 (313,260) 389,830 (292,370) 344,580 Cash Accounts receivable (net) Inventories Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Total assets Liabilities and Stockholders' Equity 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 (107,200) (120,430) $3,215,120 $3,628,240 $ 689,370 $ 727,460 203,180 0 238,000 88,000 573,000 423,000 1,924,690 1,976,660 $3,628,240 $3,215,120 The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 20Y2 are as follows: ACCOUNT NO. ACCOUNT Land Balance Date Item Debit Credit Debit Credit 2012 361,990 Jan. 1 Balance Apr. 20 Realized $113,900 cash from sale 122,520 239,470 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance Apr. 20Acquired for cash 682,210 1,106,850 424,640 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2082 Jan. 1 Balance 292,370 20,890 313,260 Dec. 31 Depreciation for year ACCOUNT Equipment Balance Date Item Debit Credit Debit Credit 344,580 20Y2 Jan. 1 Balance Jan. 26 Discarded, no salvage Aug. 11 Purchased for cash 37,900 306,680 83,150 389,830 ACCOUNT Accumulated Depreciation-Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 120,430 Jan. 1 Balance Jan. 26 Equipment discarded Dec. 31 Depreciation for year 37,900 82,530 24,670 107,200 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 May 1 Issued 15-year bonds 203,180 203,180 ACCOUNT NO. ACCOUNT Common Stock, $20 par Balance Item Debit Credit Date Debit Credit 2012 88,000 Jan. 1 Balance 150,000 238,000 Dec. 7 Issued 7,500 shares of common stock for $40 per share ACCOUNT NO. ACCOUNT Pald-in Capital in Excess of Par-Common Stock Balance Item Debit Credit Debit Date Credit 20Y2 423,000 Jan. 1 Balance Dec. 7 Issued 7,500 shares of common stock for $40 per share 150,000 573,000 ACCOUNT Retained Earnings ACCOUNT NO Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance 1,976,660 Dec. 31 Net loss 25,020 1,951,640 Dec. 31Cash dividends 26,950 1,924,690 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, 2012 Cash flows from operating activities Adjustments to reconcile net loss to net cashflow from operating activities: Changes in current operating assets and liabilities: Net cash flow used for operating activities Cash flows from investing activities: o Net cash flow used for investing activities Net cash flow used for investing activities Cash flows from financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year
