Question

The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $ 659,790 $ 711,930 Accounts receivable (net) 600,410 547,630 Inventories 910,510 837,930 Prepaid expenses 21,110 25,070 Land 226,970 343,090 Buildings 1,049,070 646,590 Accumulated depreciation-buildings (296,910) (277,110) Equipment 369,480 326,600 Accumulated depreciation-equipment (101,610) (114,140) Total assets $3,438,820 $3,047,590 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 653,380 $ 689,480 Bonds payable 192,570 0 Common stock, $20 par 226,000 84,000 Paid-in capital: Excess of issue price over par-common stock 543,000 401,000 Retained earnings 1,823,870 1,873,110 Total liabilities and stockholders’ equity $3,438,820 $3,047,590 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 343,090 Apr. 20 Realized $108,000 cash from sale 116,120 226,970 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 646,590 Apr. 20 Acquired for cash 402,480 1,049,070 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 277,110 Dec. 31 Depreciation for year 19,800 296,910 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 326,600 Jan. 26 Discarded, no salvage 35,900 290,700 Aug. 11 Purchased for cash 78,780 369,480 ACCOUNT Accumulated Depreciation-Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 114,140 Jan. 26 Equipment discarded 35,900 78,240 Dec. 31 Depreciation for year 23,370 101,610 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 May 1 Issued 15-year bonds 192,570 192,570 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 84,000 Dec. 7 Issued 7,100 shares of common stock for $40 per share 142,000 226,000 ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 401,000 Dec. 7 Issued 7,100 shares of common stock for $40 per share 142,000 543,000 ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 1,873,110 Dec. 31 Net loss 23,710 1,849,400 Dec. 31 Cash dividends 25,530 1,823,870 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 $

Answer 1