Question
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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