WHITMAN CO Statement of Cash Flows For the Year Ended December 31, 20Y2 Cash flows from operating activities: Net income (loss) Adjustments to reconcile net income (loss) to net cash flow from operating activities: Depreciation Loss on sale of land Changes in current operating assets and iabilities: Net cash flow used for operating activities Cash flows from (used for) investing activities: Net cash flow used for investing activities Cash flows from (used for) financing activities: Net cash flow from financing activities Increase (decrease) in cash Cash at the beginning of the year Cash at the end of the year 918.000 828,900 1.268,460 29.340 315,900 1.462,500 (408,600) 512.280 (141,300) (922,500) (270,000) (317,000) (758,000) (2,517,980) 964,800 Cash Accounts receivable (net) Inventories Prepaid expenses Land Buildings Accum, depr, - buildings Equipmont Accum. depr.- equipment Accounts payable Bonds payable Common stock, $25 par Paid-in capital in excess of par Retained eamings 761.940 1.162.980 35,100 479.700 900,900 (382.320) 454,680 (158.760) (958 320) receivable (net) (117,000) (558.000) (2.585700) Totals Operating activitios Not loss Deprociation - equipment Depreciation - buildings Loss on sale of land Increase in accounts receivable Increase in inventories Decroase in prepaid expenses Decrease in accounts payable Investing activities: Purchase of equipment Acquisition of building Sale of land Financing activitios: Payment of cash dividonds Issuance of bonds payabio Issuanco of common stock Not decroase in cash Totals Pr. 16-3A PR 16-3A Statement of cash flows-indirect method The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: OBJ. 2 Dec. 31, 20Y2 Dec. 31, 20Y1 Assets 964,800 Cash Accounts receivable (net) Inventories . Prepaid expenses 918,000 761,940 1,162,980 35,100 479,700 828,900 1,268,460 29,340 . 315,900 408,600) (382,320) (141,300) 1,462,500 900,900 454,680 (158,760) 512,280 Equipment. Accumulated depreciation-equipment . . .. $4,785,480 $4,219,020 Liabilities and Stockholders' Equity 922,500 958,320 270,000 317,000 758,000 2,517.980 2,585,700 Accounts payable (merchandise creditors) Common stock, $25 par Paid-in capital: Excess of issue price over par-common stock..... 0 117,000 558,000 S4.785.480 $4.219,020 The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 2 are as follows: 0Y2 ACCOUNT NO. ACCOUNT Land Balance Item Debit CreditDebit Credit Date 20Y2 479,700 163,800 315,900 Jan 1 Balance Apr. 20 Realized $151,200 cash from sale ACCOUNT Buildings Credit Debit 900,900 1,462,500 561,600 Balance Apr. 20 Acquired for cash ACCOUNT NO ACCOUNT Accumulated Debit Credi Debit Credit 82,320 Jan. 1 Be Dec. 31 Depreciation for year ACCOUNT NO. ACCOUNT Equipment Debit Credit Debit Date 454,680 46,800 407,880 512,280 Jan. 1 Balance 26 Discarded, no salvage 104,400 Aug. 11 Purchased for cash ACCOUNT NO. Balance Debit Ceat Debit Gest Date 158,760 111,960 141,300 1 Balance 26 Equipment discarded 6800 29340 Jan. Dec. 31 Depreciation for year ACCOUNT NO. ACCOUNT Bonds Payable Balance Date Item Debit Credit DebitCredit 20Y2 May 1 Issued 20-year bonds 270,000 270,000 ACCOUNT Common Stock, $25 par ACCOUNT NO. Balance Date ltem Debit Credit Debit Credit Jan.Balance Dec. 7 Issued 8,000 shares of common 117,000 stock for $50 per share 200,000 317,000 ACCOUNT NO. ACCOUNT Paid-In Capital in Excess of Par-Common Stock Balance Date Debit Credit Debit Credit Item 2OY2 Jan Dec.7Issued 8,000 shares of common 558,000 1 Balance stock for $50 per share 200,000 758,000 ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Debit CreditDebit Credit tem 20Y2 Jan Dec. 31 Net loss 2,585,700 2,550,380 2,517,980 1 Balance 35,320 32,400 31 Cash dividends Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities