Statement of Cash Flows-Indirect Method The comparative balance sheet of Whitman Co. at December 31, 2012 and 2041, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets $ 908,130 $ 978,800 753,750 Cash Accounts receivable (net) Inventories Prepaid expenses 826,400 1,253,220 1,153,330 34,510 29,060 312,400 Land 472,230 1,443,930 889,970 (408,660) 508,550 (381,410) 449,520 (157,110) $4,193,590 (139,850) $4,733,180 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 $ 899,300 $ 949,000 0 265,060 311,000 115,000 748,000 552,000 Retained earninas 2,509,820 2.577.590 2,509,820 2,577,590 Retained earnings $4,733,180 $4,193,590 Total liabilities and stockholders' equity 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 472,230 Apr. 20 Realized $148,600 cash from sale 159,830 312,400 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 889,970 1,443,930 Apr. 20Acquired for cash 553,960 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2092 Jan. 1 Balance 381,410 408,660 Dec. 31 Depreciation for year 27,250 ACCOUNT NO. ACCOUNT Equipment Balance Debit Credit Debit Item Credit Date 2012 449,520 Jan. 1 Balance 49,400 400,120 Jan. 26 Discarded, no salvage Aug. 11 Purchased for cash 108,430 508,550 ACCOUNT NO. ACCOUNT Accumulated Depreciation-Equipment Balance Credit Date Debit Item Credit Debit 2012 157,110 Jan. 1 Balance 49,400 Jan. 26 Equipment discarded Dec. 31 Depreciation for year 107,710 139,850 32,140 ACCOUNT NO. ACCOUNT Bonds Payable Balance Date Item Debit Credit Debit Credit 2012 May 1 Issued 10-year bonds 265,060 265,060 ACCOUNT Common Stock, $20 par ACCOUNT NO. Dann ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 115,000 196,000 311,000 Dec. 7 Issued 9,800 shares of common stock for $40 per share ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 552,000 748,000 196,000 Dec. 7 Issued 9,800 shares of common stock for $40 per share ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 2,577,590 Dec. 31 Net loss 32,630 2,544,960 Dec. 31Cash dividends 35,140 2,509,820 Required: 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 out flows, 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 cashflow from operating activities: Changes in current operating assets and liabilities: Net cash flow used for operating activities Cash flows from investing activities: Il ll. ( DI Net cash flow used for investing activities Cash flows from financing activities: o Cash flows from investing activities: Net cash flow used for investing activities Cash flows from financing activities: Net cash flow from financing activities ID) Cash at the beginning of the year Cash at the end of the year
