Statement of Cash Flows-Indirect Method The comparative balance sheet of Whitman Co. at December 31, 2012 and 2041, is as follows: 1, 20Y2 Dec. 31, 2041 Assets w - - - SO 0 Cash Ch 0000 Accounts receivable (net) Inventories 0 w No w 0 1,132,370 33,880 N Prepaid expenses Land 463,650 0 1,230,450 28,530 306,720 1,417,690 (401,230) 499,310 (137,310) $4,647,170 873,800 (374,480) 441,360 (154,250) $4,118,270 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 $ 882,960 $931,750 260,240 305,000 734,000 113,000 542,000 2,531,520 $4,118,270 2,464,970 $4,647,170 Total liabilities and stockholders' equity The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 2012 are as follows: ACCOUNT Land ACCOUNT NO. Balance Date Debit Credit 2012 Jan. 1 Balance 463,650 Apr. 20 Realized $145,900 cash from sale 156,930 306,720 Debit ACCOUNT Buildings ACCOUNT NO. Balance pate Item Debit Debit Credit >) 2012 Jan. 1 Balance Apr. 20 Acquired for cash 873,800 543,890 1,417,690 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Debit Credit Item Debit Credit Date 2012 Jan. 1 Balance 374,480 401,230 Dec. 31 Depreciation for year 26,750 ACCOUNT Equipment ACCOUNT NO. 111 Balance Debit Credit Item Credit / 441,360 Date 2012 Jan. 1 Balance Jan. 26 Discarded, no salvage Aug. 11 Purchased for cash 392,860 499,310 I ACCOUNT Accumulated Depreciation 1 ACCOUNT NO 8 Balance Debit Credit O E Date 2082 Jan. 1 Balance Jan. 26 Equipment discarded Dec. 31 Depreciation for year nnnn 500/ 154,250 105,750 137,310 31,5601 ACCOUNT Bonds Payable ACCOUNT NO. Balance Debit Credit Debit Credit Date Item 2012 May 1 Issued 20-year bonds 260,240 260,240 ACCOUNT Common Stock, $20 par ACCOUNT NO. 1 Balance Debit Credit Date 20Y2 Jan. 1 Balance 113,000 92,000 305,000 Dec. 7 Issued 9,600 shares of common stock for $40 per share ACCOUNT Pald-in Capital in Excess of Par-Common Stock ACCOUNT OO Item Debit Debit Date 20Y2 Jan. 1 Balance 542,000 734,000 192,000 Dec. 7 Issued 9,600 shares of common stock for $40 per share ACCOUNT Retained Earnings ACCOUNT NO. Balance Debit Credit Debit Credit Date Item 2012 Jan. 1 Balance Dec. 31 Net loss Dec. 31 I Cash dividends 32,040 34.5101 2,531,520 2,499,480 2.464.970 1 Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minu or any negative adjustments. Whitman Co. Statement of Cash Flows For the Year Ended December 31, 2012 Cash flows from operating activities: Net loss $ 32,040 Adjustments to reconcile net loss to net cashflow from operating activities: Depreciation 51,870 Loss on sale of land 11,030 Changes in current operating assets and liabilities: Increase in accounts receivable -71,330 Increase in inventories -98,080 Decrease in prepaid expenses 5,350 Decrease in accounts payable -48,790 -117,910 Net cash flow used for operating activities Cash flows from investing activities: Cash received from land sold Cash paid for acquisition of building 137,100 -510,860 Cash paid for purchase of equipment -100,030 x Net cash flow used for investing activities -473,790 eBook Calculator E Print Item Chapter 13 - HW INOCCIONS per UVIGO Cash flows from investing activities: Cash received from land sold $ 137,100 Cash paid for acquisition of building -510,860 Cash paid for purchase of equipment -100,030 -473,790 Net cash flow used for investing activities Cash flows from financing activities: Cash received from issuance of bonds payable Cash received from issuance of common stock 244,430 360,000 Cash paid for dividends -32,430 Net cash flow from financing activities 572,000 x Change in cash -66,730 Cash at the beginning of the year 904,200 Cash at the end of the year $ 837,470 x Feedback