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Statement of Cash Flows—Indirect Method The comparative balance sheet of Whitman Co. at December 31, 20Y2...

Statement of Cash Flows—Indirect Method

The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows:

     Dec. 31, 20Y2      Dec. 31, 20Y1
Assets
Cash $ 764,910 $ 826,650
Accounts receivable (net) 696,070 634,880
Inventories 1,055,580 971,440
Prepaid expenses 24,480 29,070
Land 263,130 397,750
Buildings 1,216,210 749,610
Accumulated depreciation-buildings (344,210) (321,260)
Equipment 428,350 378,630
Accumulated depreciation-equipment (117,800) (132,330)
Total assets $3,986,720 $3,534,440
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors) $ 757,480 $ 799,330
Bonds payable 223,260 0
Common stock, $20 par 261,000 97,000
Paid-in capital: Excess of issue price over par-common stock 629,000 465,000
Retained earnings 2,115,980 2,173,110
Total liabilities and stockholders’ equity $3,986,720 $3,534,440

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 397,750
Apr. 20 Realized $125,200 cash from sale 134,620 263,130
ACCOUNT Buildings ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 749,610
Apr. 20 Acquired for cash 466,600 1,216,210
ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 321,260
Dec. 31 Depreciation for year 22,950 344,210
ACCOUNT Equipment ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 378,630
Jan. 26 Discarded, no salvage 41,600 337,030
Aug. 11 Purchased for cash 91,320 428,350
ACCOUNT Accumulated Depreciation-Equipment ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 132,330
Jan. 26 Equipment discarded 41,600 90,730
Dec. 31 Depreciation for year 27,070 117,800
ACCOUNT Bonds Payable ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
May 1 Issued 10-year bonds 223,260 223,260
ACCOUNT Common Stock, $20 par ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 97,000
Dec. 7 Issued 8,200 shares of common
stock for $40 per share
164,000 261,000
ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 465,000
Dec. 7 Issued 8,200 shares of common
stock for $40 per share
164,000 629,000
ACCOUNT Retained Earnings ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 2,173,110
Dec. 31 Net loss 27,510 2,145,600
Dec. 31 Cash dividends 29,620 2,115,980

Required:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, 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:
$
Adjustments to reconcile net loss to net cash flow from operating activities:
Changes in current operating assets and liabilities:
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
$
Cash at the beginning of the year
Cash at the end of the year $

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