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 781,830 844,210 Cash 711,470 Accounts receivable (net) 648,920 Inventories 1,078,930 992,920 25,020 29,710 Prepaid expenses 268,950 Land 406,550 Buildings 766,190 1,243,110 Accumulated depreciation-buildings (351,820) (328,370) 437,820 387,010 Equipment Accumulated depreciation-equipment (120,400) (135,260) $4,074,910 $3,611,880 Total assets Liabilities and Stockholders' Equity 774,230 Accounts payable (merchandise creditors) $ 817,010 Bonds payable 228,190 267,000 Common stock, $20 par 99,000 Paid-in capital: Excess of issue price over par-common stock 643,000 475,000 Retained earnings 2,162,490 2,220,870 $4,074,910 $3,611,880 Total liabilities and stockholders' equity ACCOUNT Common Stock, $20 par ACCOUNT NO Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 99,000 168,000 267,000 Dec. 7 Issued 8,400 shares of common stock for $40 per share ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO Balance DebitCredit Date Item Debit Credit 20Y2 475,000 Jan. 1|Balance 643,000 Dec. 7 Issued 8,400 shares of common 168,000 stock for $40 per share ACCOUNT Retained Earnings ACCOUNT NO Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1|Balance 2,220,870 Dec. 31 Net loss 28,110 2,192,760 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 406,550 Apr. 20 Realized $128,000 cash from sale 137,600268,950 ACCOUNT Buildings ACCOUNT NO Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 766,190 Apr. 20 Acquired for cash 476,920 1,243,110 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1|Balance 328,370 351,820 Dec. 31 Depreciation for year 23,450 ACCOUNT NO ACCOUNT Equipment Balance Date Item Debit Credit Debit Credit 20Y2 387,010 Jan. 1|Balance 42,600 Jan. 26 Discarded, no salvage 344,410 437,820 Aug. 11 Purchased for cash 93,410 ACCOUNT NO ACCOUNT Accumulated Depreciation-Equipment Balance Date Item Debit Credit Debit Credit 20Y2 135,260 Jan. 1|Balance 42,600 92,660 Jan. 26 Equipment discarded 27,740 Dec. 31 Depreciation for year 120,400 ACCOUNT Bonds Payable ACCOUNT NO Balance Date Item Debit Credit Debit Credit 20Y2 228,190 May 1Issued 10-year bonds 228,190 Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. 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: Net cash flow used for investing activities Cash flows from financing activities
