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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

$918,260.00

$965,110.00

4

Accounts receivable (net)

828,050.00

761,830.00

5

Inventories

1,268,550.00

1,163,510.00

6

Prepaid expenses

28,760.00

35,720.00

7

Land

315,810.00

479,900.00

8

Buildings

1,463,300.00

900,740.00

9

Accumulated depreciation-buildings

(408,350.00)

(381,910.00)

10

Equipment

512,470.00

454,060.00

11

Accumulated depreciation-equipment

(142,270.00)

(159,730.00)

12

Total assets

$4,784,580.00

$4,219,230.00

13

Liabilities and Stockholders Equity

14

Accounts payable (merchandise creditors)

$922,360.00

$957,810.00

15

Bonds payable

270,000.00

0.00

16

Common stock, $25 par

316,000.00

116,000.00

17

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

775,000.00

559,000.00

18

Retained earnings

2,501,220.00

2,586,420.00

19

Total liabilities and stockholders equity

$4,784,580.00

$4,219,230.00

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 479,900
Apr. 20 Realized $152,430 cash from sale 164,090 315,810

ACCOUNT Buildings

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 900,740
Apr. 20 Acquired for cash 562,560 1,463,300

ACCOUNT Accumulated DepreciationBuildings

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 381,910
Dec. 31 Depreciation for year 26,440 408,350

ACCOUNT Equipment

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 454,060
26 Discarded, no salvage 47,260 406,800
Aug. 11 Purchased for cash 105,670 512,470

ACCOUNT Accumulated Depreciation Equipment

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 159,730
26 Equipment discarded 47,260 112,470
Dec. 31 Depreciation for year 29,800 142,270

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 116,000
Dec. 7 Issued 8,000 shares of common stock for $52 per share 200,000 316,000

ACCOUNT Paid-In Capital in Excess of ParCommon Stock

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 559,000
Dec. 7 Issued 8,000 shares of common stock for $52 per share 216,000 775,000

ACCOUNT Retained Earnings

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 2,586,420
Dec. 31 Net loss 53,460 2,532,960
31 Cash dividends 31,740 2,501,220

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. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

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. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

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 investing activities:

14

15

16

17

18

19

Cash flows from 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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