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	$ 925,710			$ 997,290
Accounts receivable (net)	842,400			768,340
Inventories	1,277,480			1,175,650
Prepaid expenses	29,620			35,180
Land	318,440			481,370
Buildings	1,471,880			907,200
Accumulated depreciation-buildings	(416,570)			(388,800)
Equipment	518,400			458,230
Accumulated depreciation-equipment	(142,560)			(160,150)
Total assets	$4,824,800			$4,274,310
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$ 916,710			$ 967,370
Bonds payable	270,190			0
Common stock, $20 par	318,000			118,000
Paid-in capital: Excess of issue price over par-common stock	763,000			563,000
Retained earnings	2,556,900			2,625,940
Total liabilities and stockholders equity	$4,824,800			$4,274,310

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			481,370
Apr. 20	Realized $151,500 cash from sale		162,930	318,440

ACCOUNT Buildings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			907,200
Apr. 20	Acquired for cash	564,680		1,471,880

ACCOUNT Accumulated Depreciation-Buildings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				388,800
Dec. 31	Depreciation for year		27,770		416,570

ACCOUNT Equipment				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			458,230
Jan. 26	Discarded, no salvage		50,400	407,830
Aug. 11	Purchased for cash	110,570		518,400

ACCOUNT Accumulated Depreciation-Equipment				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				160,150
Jan. 26	Equipment discarded	50,400			109,750
Dec. 31	Depreciation for year		32,810		142,560

ACCOUNT Bonds Payable				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
May 1	Issued 20-year bonds		270,190		270,190

ACCOUNT Common Stock, $20 par				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				118,000
Dec. 7	Issued 10,000 shares of common stock for $40 per share		200,000		318,000

ACCOUNT Paid-in Capital in Excess of Par-Common Stock				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				563,000
Dec. 7	Issued 10,000 shares of common stock for $40 per share		200,000		763,000

ACCOUNT Retained Earnings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				2,625,940
Dec. 31	Net loss	33,240			2,592,700
Dec. 31	Cash dividends	35,800			2,556,900

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:
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:
Cash from land sold	$
Cash used for acquisition of building
Cash used for purchase of equipment
Net cash flow used for investing activities
Cash flows from (used for) financing activities:
Cash from issuance of bonds payable	$
Cash from issuance of common stock
Cash used for dividends
Net cash flow from financing activities
Decrease in cash		$
Cash at the beginning of the year
Cash at the end of the year