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	$ 713,800			$ 769,450
Accounts receivable (net)	649,560			592,450
Inventories	985,040			906,530
Prepaid expenses	22,840			27,120
Land	245,550			371,180
Buildings	1,134,940			699,520
Accumulated depreciation-buildings	(321,210)			(299,800)
Equipment	399,730			353,330
Accumulated depreciation-equipment	(109,930)			(123,490)
Total assets	$3,720,320			$3,296,290
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$ 706,860			$ 745,920
Bonds payable	208,340			0
Common stock, $20 par	245,000			91,000
Paid-in capital: Excess of issue price over par-common stock	588,000			434,000
Retained earnings	1,972,120			2,025,370
Total liabilities and stockholders' equity	$3,720,320			$3,296,290

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			371,180
Apr. 20	Realized $116,800 cash from sale		125,630	245,550

ACCOUNT Buildings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			699,520
Apr. 20	Acquired for cash	435,420		1,134,940

ACCOUNT Accumulated Depreciation-Buildings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				299,800
Dec. 31	Depreciation for year		21,410		321,210

ACCOUNT Equipment				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			353,330
Jan. 26	Discarded, no salvage		38,900	314,430
Aug. 11	Purchased for cash	85,300		399,730

ACCOUNT Accumulated Depreciation-Equipment				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				123,490
Jan. 26	Equipment discarded	38,900			84,590
Dec. 31	Depreciation for year		25,340		109,930

ACCOUNT Bonds Payable				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
May 1	Issued 10-year bonds		208,340		208,340

ACCOUNT Common Stock, $20 par				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				91,000
Dec. 7	Issued 7,700 shares of common stock for $40 per share		154,000		245,000

ACCOUNT Paid-in Capital in Excess of Par-Common Stock				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				434,000
Dec. 7	Issued 7,700 shares of common stock for $40 per share		154,000		588,000

ACCOUNT Retained Earnings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				2,025,370
Dec. 31	Net loss	25,640			1,999,730
Dec. 31	Cash dividends	27,610			1,972,120

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 out flows, cash payments, decreases in cash, or any negative adjustments.

payments Whitman Co Statement of Cash Flows For the Year Ended December 31, 20Y2 Cash flows from operating activities: Net loss 53,250 x Adjustments to reconcile net loss to net cashflow from operating activities: Loss on sale of land Changes in current operating assets and liabilities: Increase in accounts recelvable Increase in inventories Decrease in prepaild expenses Decrease in accounts payable V Net cash flow used for operating activities Cash flows from investing activities Cash recelved from land sold Cash paid for acquisition of building Cash paid for purchase of equipment Net cash flow used for investing activities Cash flows from financing activities Cash received from issuance of bonds payable Cash recelved from issuance of common stock Cash paid for dividends Net cash flow from financing activities Change in cash Cash at the beginning of the year Cash at the end of the year