The comparative balance sheet of Whitman Co$.$ at December $31,20$Y$2$ and $20$Y$1,$ is as follows:

Dec. $31,20$Y$2$ Dec. $31,20$Y$1$

Assets

Cash $ $572,370$ $ $615,950$

Accounts receivable $($net$)520,860475,070$

Inventories $789,870726,910$

Prepaid expenses $18,32021,750$

Land $196,900297,630$

Buildings $910,070560,920$

Accumulated depreciation$-$buildings $(257,570)(240,400)$

Equipment $320,530283,320$

Accumulated depreciation$-$equipment $(88,140)(99,020)$

Total assets $$2,983,210$ $$2,642,130$

Liabilities and Stockholders' Equity

Accounts payable $($merchandise creditors$)$ $ $566,810$ $ $598,130$

Bonds payable $167,0600$

Common stock, $$20$ par $197,00073,000$

Excess of paid$-$in capital over par $472,000348,000$

Retained earnings $1,580,3401,623,000$

Total liabilities and stockholders$$ equity $$2,983,210$ $$2,642,130$

The noncurrent asset, noncurrent liability, and stockholders' equity accounts for $20$Y$2$ are as follows:

ACCOUNT Land ACCOUNT NO$.$

Balance

Date Item Debit Credit Debit Credit

$20$Y$2$

Jan. $1$ Balance $297,630$

Apr. $20$ Realized $$93,700$ cash from sale $100,730196,900$

ACCOUNT Buildings ACCOUNT NO$.$

Balance

Date Item Debit Credit Debit Credit

$20$Y$2$

Jan. $1$ Balance $560,920$

Apr. $20$ Acquired for cash $349,150910,070$

ACCOUNT Accumulated Depreciation$-$Buildings ACCOUNT NO$.$

Balance

Date Item Debit Credit Debit Credit

$20$Y$2$

Jan. $1$ Balance $240,400$

Dec. $31$ Depreciation for year $17,170257,570$

ACCOUNT Equipment ACCOUNT NO$.$

Balance

Date Item Debit Credit Debit Credit

$20$Y$2$

Jan. $1$ Balance $283,320$

Jan. $26$ Discarded, no salvage $31,200252,120$

Aug. $11$ Purchased for cash $68,410320,530$

ACCOUNT Accumulated Depreciation$-$Equipment ACCOUNT NO$.$

Balance

Date Item Debit Credit Debit Credit

$20$Y$2$

Jan. $1$ Balance $99,020$

Jan. $26$ Equipment discarded $31,20067,820$

Dec. $31$ Depreciation for year $20,32088,140$

ACCOUNT Bonds Payable ACCOUNT NO$.$

Balance

Date Item Debit Credit Debit Credit

$20$Y$2$

May $1$ Issued $15-$year bonds $167,060167,060$

ACCOUNT Common Stock, $$20$ par ACCOUNT NO$.$

Balance

Date Item Debit Credit Debit Credit

$20$Y$2$

Jan. $1$ Balance $73,000$

Dec. $7$ Issued $6,200$ shares of common

stock for $$40$ per share $124,000197,000$

ACCOUNT Paid$-$in Capital in Excess of Par$-$Common Stock ACCOUNT NO$.$

Balance

Date Item Debit Credit Debit Credit

$20$Y$2$

Jan. $1$ Balance $348,000$

Dec. $7$ Issued $6,200$ shares of common

stock for $$40$ per share $124,000472,000$

ACCOUNT Retained Earnings ACCOUNT NO$.$

Balance

Date Item Debit Credit Debit Credit

$20$Y$2$

Jan. $1$ Balance $1,623,000$

Dec. $31$ Net loss $20,5401,602,460$

Dec. $31$ Cash dividends $22,1201,580,340$

Required:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from $($used for$)$ 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 $31,20$Y$2$

Cash flows from $($used for$)$ operating activities:Adjustments to reconcile net loss to net cash flows from $($used for$)$ operating activities:

Answer rating: 100% (QA)

Whitman Co Statement of Cash Flows For the Year Ended December 31 20Y2 Cash flows from used for oper... View the full answer