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 Dec. 31, 20Y1 Assets Cash Accounts receivable (net) Inventories Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment $582,250 529,850 803,500 18,630 200,290 925,780 (262,010) 326,060 (89,670) $3,034,680 626,850 483,270 739,460 22,130 302,770 570,610 (244,550) 288,210 (100,730) $2,688,020 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 576,590 169,940 200,000 480,000 1,608,150 $3,034,680 608,450 0 74,000 354,000 1,651,57 $2,688,020 Total liabilities and stockholders' equity The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 20Y2 are as follows: ACCOUNT Land ACCOUNT NO ACCOUNT Land ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 302,770 Apr. 20 Realized $95,300 cash from sale 102,480 200,290 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 570,610 Apr. 20 Acquired for cash 355,170 925,780 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 244,550 Dec. 31 Depreciation for year 17,460 262,010 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance Jan. 26 Discarded, no salvage Aug. 11 Purchased for cash 288,210 256,510 326,060 31,700 69,550 ACCOUNT Accumulated Depreciation-Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 100,730 69,030 89,670 Jan. 26 Equipment discarded 31,700 Dec. 31 Depreciation for year 20,640 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 May 1 Issued 10-year bonds 169,940 169,940 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 74,000 Dec. 7 Issued 6,300 shares of common stock for $40 per share 126,000 200,000 ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 354,000 126,000 Dec. 7 Issued 6,300 shares of common stock for $40 per share 480,000 ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 1,651,570 1,630,660 1,608,150 Jan. 1Balance Dec. 31 Net loss 20,910 Dec. 31 Cash dividends 22,510 Required: Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the min 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: Net loss 20,910 Adjustments to reconcile net loss to net cash flow from operating activities: Depreciation Loss on sale of land 7,180 Changes in current operating assets and liabilities: Increase in accounts receivable -46,580 v -64,040 3,500 Increase in inventories Decrease in prepaid expenses Decrease in accounts payable 31,860 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 V 95,300 355,170 -69,550 329,420 V Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash from issuance of bonds payable y Cash from issuance of common stock 169,940 252,000 Decrease in prepaid expenses Decrease in accounts payable 3,500 -31,860 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 95,300 355,170 V -69,550 329,420 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 169,940 252.000 22,510 399,430 Net cash flow from financing activities Decrease in cash Cash at the beginning of the year Cash at the end of the year