Answer Happy

The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Cash Accounts receivable (net) Inventories Prepaid expenses Land Assets Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Total assets $ 835,830 760,610 1,153,450 26,750 287,530 1,328,970 (376,120) 468,060 (128,720) $4,356,360 Liabilities and Stockholders' Equity $827,710 243,960 286,000 688,000 Dec. 31, 20Y1 Accounts payable (merchandise creditors) Bonds payable Common stock, $20 par Paid-in capital: Excess of issue price over par-common stock Retained earnings Total liabilities and stockholders' equity The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 2012 are as follow 2,310,690 $4,356,360 $ 901,690 693,740 1,061,500 31,760 434,630 819,110 (351,050) 413,740 (144,600) $3,860,520 $873,440 0 106,000 508,000 2,373,080 $3,860,520

← Cash Trows from operating activities: Net loss Adjustments to reconcile net loss to net cash flow from operating activities: Depreciation Loss on sale of land Changes in current operating assets and liabilities: Increase in accounts receivable Increase in inventories Decrease in prepaid expenses Decrease in accounts payable Net cash flow used for operating activities Cash flows from (used for) investing activities: Cash from land sold Cash used for acquisition of building Cash used for purchase of equipment Net cash flow used for investing activities Cash flows from (used for) financing activities: Cash from issuance of bonds payable Cash paid for issuance of common stock Cash used for dividends Net cash flow from financing activities Decrease in cash Cash at the beginning of the year Cash at the end of the year -30,040 0000 000 000 1000 835,830 901,690

TakeAssignmenttakeAssignmentMain.dockers&takeAssignmentSession.o E Wv2 Crine tax D Date Apr ACCOUNT Buildings Date 2012 C Ja Arca Dale ACCOUNT Amated Depreciation-in 2002 ACCOUNT Ent Decepciation o Cate $ 4 R F m % 5 chrome V tem Her T G Debit B SO A Deb De Y Deb Owlit H Crede MacBook Air & 7 Crad [2] Cred U N 434,430 147,300 287.530 Debit &progress 8 ACCOUNT NO Balance ACCOUNT NO. Balance Deb Deb AINAN Debi ACCOUNT NO Balance ACCOUNT NO Balance Cred C 1 Cred Credit M 1 9 K O O V r

ACCOUNT Equipment Date 2012 Jan. 1 Balance Jan. 26 Discarded, no salvage Aug. 11 Purchased for cash ACCOUNT Accumulated Depreciation-Equipment Date Item ACCOUNT Bonds Payable 2012 Jan, 1 Balance Jan. 26 Equipment discarded Dec. 31 Depreciation for year Date Item Item 20Y2 May 1 Issued 15-year bonds ACCOUNT Common Stock, $20 par Debit 99,820 Debit Debit 45,500 Credit 45,500 Credit Credit 29,620 243,960 ACCOUNT NO. Debit Balance 413,740 368,240 468,060 Debit Debit ACCOUNT NO. Balance Credit Credit 144,600 99,100 128,720 ACCOUNT NO. Balance Credit 243,960 ACCOUNT NO.

ACCOUNT BOROs Payable Date 2012 May 1 Issued 15-year bonds ACCOUNT Common Stock, $20 par Date Item 2012 Jan. 1 Balance Dec. 7 Issued 9,000 shares of common stock for $40 per share Date Item ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT Retained Earnings Date 20Y2 Jan. 1 Balance Dec. 7 Issued 9,000 shares of common stock for $40 per share Item Item Debit Debit Debit Debit Credit Credit 243,960 Credit 180,000 Credit 180,000 ACCOUNT NO. Balance Debit Debit ACCOUNT NO. Debit Credit 243,960 Balance Debit Credit 106,000 286,000 ACCOUNT NO. Balance ACCOUNT NO. Balance Credit 508,000 688,000 Credit

ACCOUNT Paid-in Capital in Excess of Par-Common Stock Date 2012 Jan. 1 Balance Dec. 7 Issued 9,000 shares of common stock for $40 per share CCOUNT Retained Earnings Date Item Item 20Y2 Jan. 1 Balance Dec. 31 Net loss Dec. 31 Cash dividends Debit 30,040 32,350 Debit Credit Credit 180,000 ACCOUNT NO. Debit Balance Debit Credit ACCOUNT NO. 508,000 688,000 Balance Credit 2,373,080 2,343,040 2,310,690 Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use payments, decreases in cash, or any negative adjustments.