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	$ 670,660			$ 724,350
Accounts receivable (net)	610,300			556,650
Inventories	925,510			851,740
Prepaid expenses	21,460			25,490
Land	230,710			348,740
Buildings	1,066,350			657,250
Accumulated depreciation-buildings	(301,800)			(281,680)
Equipment	375,570			331,980
Accumulated depreciation-equipment	(103,280)			(116,020)
Total assets	$3,495,480			$3,098,500
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$ 664,140			$ 700,840
Bonds payable	195,750			0
Common stock, $20 par	229,000			85,000
Paid-in capital: Excess of issue price over par-common stock	552,000			408,000
Retained earnings	1,854,590			1,904,660
Total liabilities and stockholders equity	$3,495,480			$3,098,500

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			348,740
Apr. 20	Realized $109,800 cash from sale		118,030	230,710

ACCOUNT Buildings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			657,250
Apr. 20	Acquired for cash	409,100		1,066,350

ACCOUNT Accumulated Depreciation-Buildings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				281,680
Dec. 31	Depreciation for year		20,120		301,800

ACCOUNT Equipment				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			331,980
Jan. 26	Discarded, no salvage		36,500	295,480
Aug. 11	Purchased for cash	80,090		375,570

ACCOUNT Accumulated Depreciation-Equipment				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				116,020
Jan. 26	Equipment discarded	36,500			79,520
Dec. 31	Depreciation for year		23,760		103,280

ACCOUNT Bonds Payable				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
May 1	Issued 10-year bonds		195,750		195,750

ACCOUNT Common Stock, $20 par				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				85,000
Dec. 7	Issued 7,200 shares of common stock for $40 per share		144,000		229,000

ACCOUNT Paid-in Capital in Excess of Par-Common Stock				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				408,000
Dec. 7	Issued 7,200 shares of common stock for $40 per share		144,000		552,000

ACCOUNT Retained Earnings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				1,904,660
Dec. 31	Net loss	24,110			1,880,550
Dec. 31	Cash dividends	25,960			1,854,590

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:
Net loss	$
Adjustments to reconcile net loss to net cash flow 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 (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		$