Question

The comparative balance sheet of Whitman Co. at December 31, 2016 and 2015, is as follows:

1		Dec. 31, 2016	Dec. 31, 2015
2	Assets
3	Cash	$918,420.00	$965,310.00
4	Accounts receivable (net)	828,210.00	762,450.00
5	Inventories	1,268,100.00	1,162,260.00
6	Prepaid expenses	29,220.00	35,270.00
7	Land	315,170.00	479,410.00
8	Buildings	1,463,110.00	901,510.00
9	Accumulated depreciation-buildings	(409,500.00)	(383,260.00)
10	Equipment	512,060.00	454,500.00
11	Accumulated depreciation-equipment	(141,780.00)	(159,530.00)
12	Total assets	$4,783,010.00	$4,217,920.00
13	Liabilities and Stockholders’ Equity
14	Accounts payable (merchandise creditors)	$921,870.00	$957,980.00
15	Bonds payable	270,000.00	0.00
16	Common stock, $25 par	328,500.00	116,000.00
17	Paid-in capital: Excess of issue price over par—common stock	754,500.00	559,000.00
18	Retained earnings	2,508,140.00	2,584,940.00
19	Total liabilities and stockholders’ equity	$4,783,010.00	$4,217,920.00

The noncurrent asset, noncurrent liability, and stockholders’ equity accounts for 2016 are as follows:

ACCOUNT Land

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance			479,410
Apr.	20	Realized $150,820 cash from sale		164,240	315,170

ACCOUNT Buildings

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance			901,510
Apr.	20	Acquired for cash	561,600		1,463,110

ACCOUNT Accumulated Depreciation––Buildings

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance				383,260
Dec.	31	Depreciation for year		26,240		409,500

ACCOUNT Equipment

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance			454,500
	26	Discarded, no salvage		46,400	408,100
Aug.	11	Purchased for cash	103,960		512,060

ACCOUNT Accumulated Depreciation ––Equipment

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance				159,530
	26	Equipment discarded	46,400			113,130
Dec.	31	Depreciation for year		28,650		141,780

ACCOUNT Bonds Payable

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
May	1	Issued 20-year bonds		270,000		270,000

ACCOUNT Common Stock $25 par

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance				116,000
Dec.	7	Issued 8,500 shares of common stock for $48 per share		212,500		328,500

ACCOUNT Paid-In Capital in Excess of Par––Common Stock

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance				559,000
Dec.	7	Issued 8,500 shares of common stock for $48 per share		195,500		754,500

ACCOUNT Retained Earnings

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
2016
Jan.	1	Balance				2,584,940
Dec.	31	Net loss	44,360			2,540,580
	31	Cash dividends	32,440			2,508,140

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. In the operating activities section, use the minus sign to indicate cash outflows, decreases in cash and a net cash outflow, if required. In the investing and financing activities section, use a minus sign

Whitman Co.

Statement of Cash Flows

1 Cash flows from operating activities: 2 3 Adjustments to reconcile net loss to net cash flow from operating activities: 4 5 6 Changes in current operating assets and liabilities: 7 8 9 10 11 12 13 Cash flows from investing activities: 14 15 16 17 18 19 Cash flows from financing activities: 20 21 22 23 24 25 Cash at the beginning of the year 26 Cash at the end of the year

Answer 1

Solution:-.