Statement of Cash Flows-Indirect Method The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 2041, is as follows: Dec. 31, 2012 Dec. 31, 20Y1 Assets $ 915,710 705,870 1,080,070 32,320 442, 230 833,440 Cash $ 850,450 Accounts receivable (net) 773,910 Inventories 1,173,620 Prepaid expenses 27,210 Land 292,550 Buildings 1,352,220 Accumulated depreciation-buildings (382,700) Equipment 476,250 Accumulated depreciation equipment (130,970) Total assets $4,432,540 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 842,180 Bonds payable 248,220 Common stock, $20 par 292,000 Paid-in capital: Excess of issue price over par-common stock 701,000 Retained earnings 2,349,140 Total liabilities and stockholders' equity $4,432,540 (357,190) 420,970 (147,130) $3,926,290 $ 888,720 108,000 517,000 2,412,570 $3,926,290 The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 2012 are as follows: ACCOUNT Land ACCOUNT NO Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance Apr. 20 Realized $139,200 cash from sale 149,680 442.230 292,550 ACCOUNT Buildings ACCOUNT NO. Balance Date Credit Debit Credit 2012 Jan. 1 Balance Apr. 20Acquired for cash 833,4401 1,352,220 518,780 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance Dec. 31 Depreciation for year 357,190 382,700 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 | Jan. 1 Balance Jan. 26 Discarded, no salvage Aug. 11 Purchased for cash 46,3001 420,970 374,670 476,250 101,580 ACCOUNT Accumulated Depreciation Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance Jan. 26 Equipment discarded Dec. 31. Depreciation for year 147,130 100,830 130,970 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 May 1 Issued 15-year bonds 248,220 248,220 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Debit Credit Date Item Debit Credit 20Y2 Jan. 1 Balance Dec. 7 issued 9,200 shares of common stock for $40 per share 108,000 292,000 184,000 ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Debit Credit Date Item Debit Credit 2012 Jan. 1 Balance Dec. 7 Issued 9,200 shares of common stock for $40 per share 517,000 701,000 184,000 ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance Dec. 31 Net loss Dec. 31 Cash dividends 30,540 2,412,570 2,382,030 2,349,140 32.890 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: Adjustments to reconcile net loss to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow used for operating activities Cash flows from (used for) investing activities: Il bill vid QI Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities Cash at the beginning of the year Cash at the end of the year
