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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

Excess of paid-in capital over par

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

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.

X

Statement of Cash Flows

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