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 $ 824,840 750,600 1,138,280 26,390 283,740 1,311,500 (371,180) 461,910 (127,030) $4,299,050 Cash $ 889,020 694,620 1,047,550 31,340 428,920 808,340 (346,430) 408,300 (142,700) $3,808,960 Accounts receivable (net) Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreclation-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 $ 816,820 240,750 283,000 680,000 2,278,480 $4,299,050 861,960 105,000 502,000 2,340,000 $3,808,960 Total liabilities and stockholders' equity The noncurrent asset, noncurrent liabillity, and stockholders' equity accounts for 20Y2 are as follows ACCOUNT Land ACCOUNT NO Balance Date Item Debit Credit Debit Credit 20Y2 Jan, 1 Balance 428,920 45,10283,740 Apr. 20 Realized $135,000 cash from sale The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 20Y2 are as follows: ACCOUNT Land ACCOUNT NO. Balance DebitCredit Item Debit Credit 20Y2 Jan. 1Balance 429,920 Apr. 20 Realized $135,000 cash from sale 145,180 233,740 ACCOUNT Buildings ACCOUNT NO Debit Item Debit Credit Jan. 1Balance Apr. 20 Acquired for cash 808,340 503,160 1,311,500 Depreclatlon-Buildings ACCOUNT ACCOUNT NO. Balance Debit Credit Debit 20Y2 an. 1 lBalance 346,430 Dec. 31 Depreciation for year 371,180 24,750 ACCOUNT Equipment ACCOUNT NO. Debit Credit Item Credit Jan. 1Balance Jan. 26 Discarded, no salvage Aug. 11 Purchased for cash 403,300 363,400 461,910 44,900 99,510 ACCOUNT Equipment ACCOUNT NO. Debit Item Credit Debit Credit 20Y2 an. 1 Balance 408,300 363,400 461,910 Jan. 26 Discarded, no salvage Aug. 11 Purchased for cash 44.900 98,510 ACCOUNT ACCOUNT NO. Debit Date Item Credit Debit Credit 20Y2 142,700 97,800 127,030 Jan. 1 Balance Jan. 26 Equipment discarded 44,900 Dec. 31 Depreciation for year 29,230 ACCOUNT Bonds Payable ACCOUNT NO Debit Credit Debit Credit May 1Issued 10-year bonds 240,750 240,750 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance bitCredit Debit Debit Item 20Y2 an. 1 Balance 105,000 Dec. 7 Issued 8,900 shares of common stock for $40 per share 178,000 283,000 ACCOUNT Common Stock, $20 par ACCOUNT NO. Date DebitC Credit Debit Credit 20Y2 Jan. 1 Balance 105,000 Dec. 7Issued 8,900 shares of common stock for $40 per share 178,000 283,000 ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Credit DebitCredit Debit Date Item 20Y2 502,000 Jan. 1Balance Dec. 7 Issued 8,900 shares of common stock for $40 per share 178,000 680,00D ACCOUNT Retained Earnings ACCOUNT NO Balance Date Item Debit Credit Debit Credit 20Y2 an 1Balance Dec. 31 Net loss 2,340,000 2,310,380 2,278,480 29,620 Dec. 31 Cash dividends 31,900 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 144 X Adjustments to reconcile net loss to net cash flow from operating activities: 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 actvities Net loss Adjustments to reconcile net loss to net cash flow from operating activities: 60.110 | X Loss on sale of land 11,350X 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 actimties Decrease in cash Cash at the beginning of the year Cash at the end of the year