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	$ 832,360			$ 896,400
Accounts receivable (net)	757,450			690,860
Inventories	1,148,660			1,057,100
Prepaid expenses	26,640			31,630
Land	286,330			432,830
Buildings	1,323,450			815,710
Accumulated depreciation-buildings	(374,560)			(349,590)
Equipment	466,120			412,020
Accumulated depreciation-equipment	(128,180)			(144,000)
Total assets	$4,338,270			$3,842,960
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$ 824,270			$ 869,820
Bonds payable	242,940			0
Common stock, $20 par	286,000			106,000
Paid-in capital: Excess of issue price over par-common stock	686,000			506,000
Retained earnings	2,299,060			2,361,140
Total liabilities and stockholders' equity	$4,338,270			$3,842,960

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			432,830
Apr. 20	Realized $136,200 cash from sale		146,500	286,330

ACCOUNT Buildings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			815,710
Apr. 20	Acquired for cash	507,740		1,323,450

ACCOUNT Accumulated Depreciation-Buildings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				349,590
Dec. 31	Depreciation for year		24,970		374,560

ACCOUNT Equipment				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			412,020
Jan. 26	Discarded, no salvage		45,300	366,720
Aug. 11	Purchased for cash	99,400		466,120

ACCOUNT Accumulated Depreciation-Equipment				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				144,000
Jan. 26	Equipment discarded	45,300			98,700
Dec. 31	Depreciation for year		29,480		128,180

ACCOUNT Bonds Payable				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
May 1	Issued 20-year bonds		242,940		242,940

ACCOUNT Common Stock, $20 par				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				106,000
Dec. 7	Issued 9,000 shares of common stock for $40 per share		180,000		286,000

ACCOUNT Paid-in Capital in Excess of Par-Common Stock				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				506,000
Dec. 7	Issued 9,000 shares of common stock for $40 per share		180,000		686,000

ACCOUNT Retained Earnings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				2,361,140
Dec. 31	Net loss	29,890			2,331,250
Dec. 31	Cash dividends	32,190			2,299,060

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:
Net loss	$
Adjustments to reconcile net loss to net cashflow from operating activities:
Depreciation
Loss on sale of land
Changes in current operating assets and liabilities:
Increase in accounts receivable
Increase in inventories
Decrease in prepaid expenses
Decrease in accounts payable
Net cash flow used for operating activities		$
Cash flows from investing activities:
Cash received from gain on sale of land	$
Loss on sale of land
Cash paid for purchase of equipment
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
Cash paid for dividends
Net cash flow from financing activities
Increase in accounts payable		$
Cash at the beginning of the year
Cash at the end of the year		$