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, 2011 Assets Cash $ 567,610 $ 612,820 Accounts receivable (net) 516,530 471,120 Inventories 783,300 720,860 Prepaid expenses 18,160 21,570 Land 195,260 295,160 Buildings 902,500 556,260 Accumulated depreciation-buildings (255,420) (238,400) Equipment 317,860 280,970 Accumulated depreciation-equipment (87,410) (98,200) Total assets $2,958,390 $2,622,160 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 562,090 $ 593,150 Bonds payable 165,670 0 Common stock, $20 par 194,000 72,000 Paid-in capital: Excess of issue price over par-common stock 467,000 345,000 Retained earnings 1,569,630 1,612,010 Total liabilities and stockholders' equity $2,958,390 $2,622,160 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 2012 Jan. 1 Balance Apr. 20 Realized $92,900 cash from sale 295,160 195,260 99,900 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance Apr. 20Acquired for cash 556,260 902,500 346,240 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance 238,400 Dec. 31 Depreciation for year 17,020 255,420 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 30,900 280,970 250,070 317,860 67.790 ACCOUNT Accumulated Depreciation Equipment ACCOUNT NO Balance Debit Credit Date Item Debit Credit 2012 Jan, 1 Balance Jan. 26 Equipment discarded Dec 31 Depreciation for year 98,200 67,300 30,900 20,110 87,410 ACCOUNT Bonds Payable ACCOUNT NO. Balance Debit Credit Debit Credit Date Item 2012 May 1 Issued 10-year bands 165,670 165,670 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Credit Debit Credit Debit Date Item 2012 Jan. 1 Balance Dec 7 issued 6,100 shares of common stock for $40 per share 72,000 194,000 122,000 ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO Balance Debit Credit Date Item Debit Credit 2012 Jan 11 Balance 345,000 467,000 122,000 Dec. 7 Issued 6,100 shares of common stock for $40 per share ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance 1,612,010 1,591,600 Dec 31 Net loss 20,410 ACCOUNT Retained Earnings ACCOUNT NO. Balance Debit Credit Date Item Debit Credit 2012 Jan. 1 Balance 1,612,010 Dec 31 Net loss 20,410 1.591,600 Dec 31 Cash dividends 21,970 1.569,630 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 outfiows, cash payments, decreases in cash, or any negative adjustments Whitman Co. Statement of Cash Flows For the Year Ended December 31, 2012 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 Decrease in inventories Decrease in prepaid expenses Depreciation Loss on sale of land Changes in current operating assets and liabilities: Increase in accounts receivable Decrease 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 received from gain on sale of land 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 paid for issuance of common stock Cash used for dividends Net cash flow from financing activities Decrease in cash Cash at the beginning of the year Cast at the end of the year o