Question:
The comparative balance sheet of Whitman Co. at December 31, 2014 and 2013 is as follows:
The noncurrent asset, noncurrent liability, and stockholders’ equity accounts for 2014 are as follows:
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operatingactivities.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Transcribed Image Text:
Dec. 31, 2014 Dec. 31, 2013 Assets Accounts receivable (net) Inventories Prepaid expenses.. . Land... Buildings Accumulated depreciation-buildings. . . 918,000 964,800 761,940 1,268,460 62,980 35,100 479,700 900,900 (408,600) (382,320) 454,680 (158,760) S4.785.480 S4 219,020 828,900 29,340 315,900 1,462,500 512,280 (141,300) Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) Bonds payable . . Common stock, $25 par. Paid-in capital: Excess of issue price over par-common stock.... 922,500 S 958,320 0 117,000 558,000 2,585,700 $4,785,480 $4,219,020 270,000 317,000 758,000 2,517,980 ACCOUNT Land ACCOUNT NO Balance Date Item Debit Credit Debit Credit 2014 Jan. Apr. 20 Realized $151,200 cash 1Balance 479,700 from sale 163,800315,900 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2014 Jan. Apr. 20 Acquired for cash 1Balance 900,900 1,462,500 561,600 ACCOUNT Accumulated Depreciation- Buildings ACCOUNT NO Balance Date Item Debit Credit Debit Credit 2014 Jan. Dec. 3 Depreciation for year 1nce 382,320 408,600 26,280 ACCOUNT Equipment ACCOUNT NO Balance Date Item Debit Credit Debit Credit 2014 1nce 26 Discarded, no salvage Jan. 454,680 46,800407,880 512,280 Aug 1 Purchased for cash 104,400 ACCOUNT Accumulated Depreciation-Equipme ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2014 1Bance 158,760 111,960 141,300 Jan. 26 Equipment discarded Dec. 3 Depreciation for year 46,800 29,340 ACCOUNT Bonds Payable ACCOUNT NO Balance Date Debit Credit Debit Credit 2014 May ACCOUNT Common Stock, S25 par 1Issued 20-year bonds 270,000 270,000 ACCOUNT NO Balance Date Debit Credit Debit Credit 2014 1Balance 7 Issued 8,000 shares of common lan. 117,000 stock for $50 per share 200,000 317,000 ACCOUNT Paid-In Capital in Excess of Par-Common Stock ACCOUNT NO Balance Date Item Debit Credit Debit Credit 2014 Jan Dec. 1Balance 558,000 7 Issued 8,000 shares of common stock for $50 per share 200,000 758,000 ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 2014 Jan. Dec.31 Net loss 1Bance 35,320 32,400 2,585,700 2,550,380 2,517,980 31 Cash dividends