Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Statement of Cash Flows-Indirect Method The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 2041, is as follows: Dec. 31, 20Y2 Dec

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Statement of Cash Flows-Indirect Method The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 2041, is as follows: Dec. 31, 20Y2 Dec 31, 20Y1 Assets $ 868,520 668,910 1,023,520 30,620 419,080 789,800 (338,490) Cash $ 805,920 Accounts receivable (net) 733,390 Inventories 1,112,170 Prepaid expenses 25,790 Land 277,240 Buildings 1,281,410 Accumulated depreciation-buildings (362,660) Equipment 451,320 Accumulated depreciation equipment (124,110) Total assets $4,200,470 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 798,090 Bonds payable 235,230 Common stock, $20 par 276,000 Paid-in capital: Excess of issue price over par common stock 664,000 Retained earnings 2,227,150 Total liabilities and stockholders' equity $4,200,470 398,930 (139,420) $3,721,470 $ 842,190 102,000 490,000 2,287,280 $3,721,470 ACCOUNT Land ACCOUNT NO. Balance Debit Credit Debit Credit Date Item 2042 Jan. 1 Balance Apr. 20 Realized $131,900 cash from sale 419,080 277,240 141,840 ACCOUNT Buildings ACCOUNT NO. Balance Debit Credit Date Debit Credit 2012 Jan. 1 Balance Apr. 20 Acquired for cash 789,800 1,281,410 491,610 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Debit Credit Debit Credit www Date Item 2082 Jan. 1 Balance Dec. 31 Depreciation for year www. 338,490 362,660 24,170 WWW ACCOUNT Equipment ACCOUNT NO. Balance Debit Credit Date Debit Credit 2012 Jan. 1 Balance Jan. 26 Discarded, no salvage Aug. 11 Purchased for cash 43,900 398,930 355,030 451,320 96,290 ACCOUNT Accumulated Depreciation-Equipment ACCOUNT NO. Balance Debit Credit Debit Credit Date 2042 Jan. 1 Balance Jan. 26 Equipment discarded Dec. 31 Depreciation for year 139,420 43,900 95,520 124,110 28,590 ACCOUNT Bonds Payable ACCOUNT NO. Balance Debit Credit Date Item Debit Credit 2012 May 1 Issued 20-year bonds 235 230 235,230 w ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Debit Credit Date Debit Credit 2012 Jan. 1 Balance Dec. 7 Issued 8,700 shares of common stock for $40 per share 102,000 276,000 174,000 ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Debit Credit Date Item Debit Credit 2042 Jan. 1 Balance Dec. 7 Issued 8,700 shares of common stock for $40 per share 490,000 664,000 174,000 ACCOUNT Retained Earnings 833333333333 333 3 3333333333338 ACCOUNT NO. 22:33 Balance Credit Debit Credit Date Item Debit 1 2012 Jan. 1 Balance Dec. 31 Net loss Dec. 31 Cash dividends 28,950 2,287,280 2,258,330 2,227,150 31,180 Required: Prepare a statement of cash flows, using the Indirect method of presenting cash flow from operating activities. Use the minussion to indicate cash outflows, cash payments, decreases in cash or any negative adjustments Whitman Statement of Cash Flows For the Year End Berber 2012 Cash flows from operating contes Adjustments to reconcile net low to how from operating actives: II Changes in current operating and lates Net cash flow used for operating actes Cash flows from used for investing active mi mi u Met 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Managerial Accounting

Authors: Peter Brewer, Ray Garrison, Eric Noreen

9th Edition

1265672008, 978-1265672003

More Books

Students also viewed these Accounting questions

Question

When should you avoid using exhaust brake select all that apply

Answered: 1 week ago

Question

Did you open with an issue explanation?

Answered: 1 week ago