The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash Accounts receivable (net) Inventories Prepaid expenses Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment 581,240 528,930 802,110 18,600 199,950 924,170 (261,560) 325,490 (89,510) $3,029,420 625,330 482,430 738,170 22,090 302,240 569,620 (244,120) 287,710 (100,550) $2,682,920 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 575,590 169,650 200,000 479,000 1,605,180 $3,029,420 607,400 74,000 353,000 1,648,520 $2,682,920 Total liabilities and stockholders' equity 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 302,240 Apr. 20 Realized $95,100 cash from sale 102,290199,950 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 569,620 Apr. 20 Acquired for cash 354,550 924,170 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1|Balance 244,120 Dec. 31Depreciation for year 17,440 261,560 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance an. 26 Discarded, no salvage 287,710 256,110 325,490 31,600 Aug. 11 Purchased for cash 69,380 ACCOUNT Accumulated Depreciation-Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 100,550 68,950 89,510 Jan. 1|Balance Jan. 26 Equipment discarded 31,600 Dec. 31 Depreciation for year 20,560 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 May 1 Issued 20-year bonds 169,650 169,650 ACCOUNT Common Stock, $.20 par ACCOUNT NO Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1Balance 74,000 Dec. 7 Issued 6,300 shares of common stock for $40 per share 126,000 200,000 ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance DebitCredit Date Item Debit Credit 20Y2 an. 1 Balance 353,000 Dec. 7 Issued 6,300 shares of common stock for $40 per share 126,000 479,000 ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 1,648,520 1,627,650 1,605,180 an. 1 Balance Dec. 31 Net loss 20,870 Dec. 31 Cash dividends 22,470 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: 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
