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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

$918,330.00

$965,220.00

4

Accounts receivable (net)

828,620.00

761,010.00

5

Inventories

1,268,630.00

1,162,990.00

6

Prepaid expenses

30,290.00

35,390.00

7

Land

315,080.00

478,880.00

8

Buildings

1,462,320.00

899,910.00

9

Accumulated depreciation-buildings

(408,210.00)

(382,220.00)

10

Equipment

511,480.00

454,920.00

11

Accumulated depreciation-equipment

(140,580.00)

(159,440.00)

12

Total assets

$4,785,960.00

$4,216,660.00

13

Liabilities and Stockholders Equity

14

Accounts payable (merchandise creditors)

$923,090.00

$958,100.00

15

Bonds payable

269,000.00

0.00

16

Common stock, $25 par

325,500.00

118,000.00

17

Excess of paid-in capital over par

766,500.00

559,000.00

18

Retained earnings

2,501,870.00

2,581,560.00

19

Total liabilities and stockholders equity

$4,785,960.00

$4,216,660.00

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 478,880
Apr. 20 Realized $150,210 cash from sale 163,800 315,080

ACCOUNT Buildings

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 899,910
Apr. 20 Acquired for cash 562,410 1,462,320

ACCOUNT Accumulated DepreciationBuildings

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 382,220
Dec. 31 Depreciation for year 25,990 408,210

ACCOUNT Equipment

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 454,920
26 Discarded, no salvage 47,120 407,800
Aug. 11 Purchased for cash 103,680 511,480

ACCOUNT Accumulated Depreciation Equipment

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 159,440
26 Equipment discarded 47,120 112,320
Dec. 31 Depreciation for year 28,260 140,580

ACCOUNT Bonds Payable

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
May 1 Issued 20-year bonds 269,000 269,000

ACCOUNT Common Stock $25 par

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 118,000
Dec. 7 Issued 8,300 shares of common stock for $50 per share 207,500 325,500

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 8,300 shares of common stock for $50 per share 207,500 766,500

ACCOUNT Retained Earnings

ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 2,581,560
Dec. 31 Net loss 47,830 2,533,730
31 Cash dividends 31,860 2,501,870

Required:

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

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