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The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: 1 Dec. 31, 20Y2 Dec. 31, 20Y1 2 Assets

The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows:

1

Dec. 31, 20Y2

Dec. 31, 20Y1

2

Assets

3

Cash

$918,000.00

$964,800.00

4

Accounts receivable (net)

828,900.00

761,940.00

5

Inventories

1,268,460.00

1,162,980.00

6

Prepaid expenses

29,340.00

35,100.00

7

Land

315,900.00

479,700.00

8

Buildings

1,462,500.00

900,900.00

9

Accumulated depreciation-buildings

(408,600.00)

(382,320.00)

10

Equipment

512,280.00

454,680.00

11

Accumulated depreciation-equipment

(141,300.00)

(158,760.00)

12

Total assets

$4,785,480.00

$4,219,020.00

13

Liabilities and Stockholders Equity

14

Accounts payable (merchandise creditors)

$922,500.00

$958,320.00

15

Bonds payable

270,000.00

0.00

16

Common stock, $25 par

317,000.00

117,000.00

17

Paid-in capital: Excess of issue price over parcommon stock

758,000.00

558,000.00

18

Retained earnings

2,517,980.00

2,585,700.00

19

Total liabilities and stockholders equity

$4,785,480.00

$4,219,020.00

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 479,700
Apr. 20 Realized $151,200 cash from sale 163,800 315,900

ACCOUNT Buildings

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 900,900
Apr. 20 Acquired for cash 561,600 1,462,500

ACCOUNT Accumulated DepreciationBuildings

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 382,320
Dec. 31 Depreciation for year 26,280 408,600

ACCOUNT Equipment

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 454,680
26 Discarded, no salvage 46,800 407,880
Aug. 11 Purchased for cash 104,400 512,280

ACCOUNT Accumulated Depreciation Equipment

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 158,760
26 Equipment discarded 46,800 111,960
Dec. 31 Depreciation for year 29,340 141,300

ACCOUNT Bonds Payable

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
May 1 Issued 20-year bonds 270,000 270,000

ACCOUNT Common Stock $25 par

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 117,000
Dec. 7 Issued 8,000 shares of common stock for $50 per share 200,000 317,000

ACCOUNT Paid-In Capital in Excess of ParCommon Stock

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 558,000
Dec. 7 Issued 8,000 shares of common stock for $50 per share 200,000 758,000

ACCOUNT Retained Earnings

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 2,585,700
Dec. 31 Net loss 35,320 2,550,380
31 Cash dividends 32,400 2,517,980

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. In the operating activities section, use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow, if required. In the investing and financing activities section, use a minus sign only to indicate a NET cash outflow for the section.

Labels and Amount Descriptions

Labels and Amount Descriptions
Cash used for acquisition of building
Cash used for dividends
Cash used for merchandise
Cash used for purchase of equipment
Cash from customers
Cash from issuance of bonds payable
Cash from issuance of common stock
Cash from land sold
December 31, 20Y2
Decrease in accounts payable
Decrease in accounts receivable
Decrease in cash
Decrease in inventories
Decrease in prepaid expenses
Decrease in salaries payable
Depreciation
For the Year Ended December 31, 20Y2
Gain on sale of investments
Gain on sale of land
Increase in accounts payable
Increase in accounts receivable
Increase in cash
Increase in inventories
Increase in prepaid expenses
Increase in salaries payable
Issuance of common stock for acquisition of building
Issuance of common stock for purchase of equipment
Issuance of common stock to retire bonds
Loss on sale of investments
Loss on sale of land
Net cash flow from financing activities
Net cash flow from investing activities
Net cash flow from operating activities
Net cash flow used for financing activities
Net cash flow used for investing activities
Net cash flow used for operating activities
Net income
Net loss

Statement of Cash Flows

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. In the operating activities section, use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow, if required. In the investing and financing activities section, use a minus sign only to indicate a NET cash outflow for the section.

Whitman Co.

Statement of Cash Flows

1

Cash flows from operating activities:

2

3

Adjustments to reconcile net loss to net cash flow from operating activities:

4

5

6

Changes in current operating assets and liabilities:

7

8

9

10

11

12

13

Cash flows from (used for) investing activities:

14

15

16

17

18

19

Cash flows from (used for) financing activities:

20

21

22

23

24

25

Cash at the beginning of the year

26

Cash at the end of the year

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