The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows:
Statement of Cash Flows-Indirect Method The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 2041, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $ 540,960 $ 580,460 Accounts receivable (net) 492,270 449,000 Inventories 746,520 687,020 Prepaid expenses 17,310 20,560 Land 186,090 281,300 Buildings 530,140 860,130 (243,430) Accumulated depreciation-buildings (227,200) 267,780 Equipment 302,940 Accumulated depreciation equipment (83,310) (93,590) Total assets $2,819,480 $2,495,470 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 535,700 $ 565,300 Bonds payable 157,890 0 Common stock, $20 par 69,000 187,000 447,000 Paid-in capital: Excess of issue price over par-common stock 329,000 Retained earnings 1,491,890 1,532,170 Total liabilities and stockholders' equity $2,819,480 $2,495,470 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 2012 Jan. 1 Balance 281,300 186,090 Apr. 20 Realized $88,500 cash from sale 95,210 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance Apr. 20Acquired for cash 530,140 860,130 329,990 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 227,200 Jan. 1 Balance Dec. 31 Depreciation for year 16,230 243,430 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance Jan. 26 Discarded, no salvage 29,500 267,780 238,280 302,940 Aug. 11 Purchased for cash 64,660 ACCOUNT Accumulated Depreciation-Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance Jan. 26 Equipment discarded 29,500 93,590 64,090 83,310 Dec. 31 Depreciation for year 19,220 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 May 1 Issued 20-year bonds 157,890 157,890 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 69,000 118,000 187,000 Dec. 7 Issued 5,900 shares of common stock for $40 per share ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Date Item Debit 1 Credit Debit Credit 20Y2 Jan. 1 Balance 329,000 118,000 447,000 Dec. 7 Issued 5,900 shares of common stock for $40 per share ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2012 Jan. 1 Balance 1,532,170 Dec. 31 Net loss 19,390 1,512,780 Dec. 31 Cash dividends 20,890 1,491,890 Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, 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: Net loss Adjustments to reconcile net loss to net cashflow from operating activities: Depreciation Loss on sale of land Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Decrease in prepaid expenses Decrease in accounts payable Net cash flow used for operating activities Cash flows from investing activities: Cash received from land sold Cash paid for acquisition of building Cash paid for purchase of equipment Net cash flow used for investing activities Cash flows from financing activities: Cash received from issuance of bonds payable Cash received from issuance of common stock Adjustments to reconcile net loss to net cashflow from operating activities: Depreciation Loss on sale of land Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Decrease in prepaid expenses Decrease in accounts payable Net cash flow used for operating activities Cash flows from investing activities: Cash received from land sold Cash paid for acquisition of building Cash paid for purchase of equipment Net cash flow used for investing activities Cash flows from financing activities: Cash received from issuance of bonds payable Cash received from issuance of common stock Cash paid for dividends Net cash flow from financing activities Change in cash Cash at the beginning of the year Cash at the end of the year
