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Statement of Cash FlowsIndirect Method The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec.
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Statement of Cash FlowsIndirect Method
The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows:
Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $ 733,970 $ 791,920 Accounts receivable (net) 667,910 609,200 Inventories 1,012,880 932,140 Prepaid expenses 23,490 27,890 Land 252,490 381,660 Buildings 1,167,010 719,290 Accumulated depreciation-buildings (330,290) (308,270) Equipment 411,020 363,320 Accumulated depreciation-equipment (113,030) (126,980) Total assets $3,825,450 $3,390,170 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 726,840 $ 767,000 Bonds payable 214,230 0 Common stock, $20 par 251,000 93,000 Paid-in capital: Excess of issue price over par-common stock 604,000 446,000 Retained earnings 2,029,380 2,084,170 Total liabilities and stockholders equity $3,825,450 $3,390,170 The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 20Y2 are as follows:
ACCOUNT Land ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 381,660 Apr. 20 Realized $120,100 cash from sale 129,170 252,490 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 719,290 Apr. 20 Acquired for cash 447,720 1,167,010 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 308,270 Dec. 31 Depreciation for year 22,020 330,290 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 363,320 Jan. 26 Discarded, no salvage 40,000 323,320 Aug. 11 Purchased for cash 87,700 411,020 ACCOUNT Accumulated Depreciation-Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 126,980 Jan. 26 Equipment discarded 40,000 86,980 Dec. 31 Depreciation for year 26,050 113,030 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 May 1 Issued 15-year bonds 214,230 214,230 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 93,000 Dec. 7 Issued 7,900 shares of common stock for $40 per share 158,000 251,000 ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 446,000 Dec. 7 Issued 7,900 shares of common stock for $40 per share 158,000 604,000 ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 2,084,170 Dec. 31 Net loss 26,380 2,057,790 Dec. 31 Cash dividends 28,410 2,029,380 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: $ Net cash flow from financing activities $ Cash at the beginning of the year Cash at the end of the year $
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