please look carefully at the first picture and then answer the empty boxes on the second picture, thank you in advance **Chapter 16 Homework****PR 16-3A Statement of Cash Flows—Indirect Method**The comparative balance sheets of Whitman Co. as of December 31, 2016, and 2015, are as follows:#### Assets- **Dec. 31, 2016** - Cash: $918,000 - Accounts receivable (net): 828,900 - Inventories: 1,268,460 - Prepaid expenses: 26,340 - Land: 315,900 - Buildings: 1,462,500 - Accumulated depreciation—buildings: (408,600) - Equipment: 512,280 - Accumulated depreciation—equipment: (111,300) - Total assets: $4,785,480- **Dec. 31, 2015** - Cash: $964,800 - Accounts receivable (net): 761,940 - Inventories: 1,162,980 - Prepaid expenses: 35,100 - Land: 479,700 - Buildings: 900,900 - Accumulated depreciation—buildings: (382,320) - Equipment: 454,680 - Accumulated depreciation—equipment: (158,760) - Total assets: $4,219,020#### Liabilities and Stockholders' Equity- **Dec. 31, 2016** - Accounts payable (merchandise creditors): $922,500 - Bonds payable: 270,000 - Common stock, $25 par: 317,000 - Paid-in capital: 758,000 - Retained earnings: 2,517,980 - Total liabilities and stockholders’ equity: $4,785,480- **Dec. 31, 2015** - Accounts payable (merchandise creditors): $958,320 - Bonds payable: 0 - Common stock, $25 par: 117,000 - Paid-in capital: 558,000 - Retained earnings: 2,585,700 - Total liabilities and stockholders’ equity: $4,219,020### Noncurrent Asset, Noncurrent Liability **Problem 16-3A****WHITMAN CO.****Statement of Cash Flows**For the Year Ended December 31, 2016---**Cash flows from operating activities:**- Blank line for input- Adjustments to reconcile net loss to net cash flow from operating activities: - Multiple entries labeled "Wrong" with a blank line next to each for financial figures.**Cash flows from investing activities:**- Multiple entries labeled "Wrong" with corresponding blank spaces for financial figures.**Cash flows from financing activities:**- Multiple entries labeled "Wrong" with corresponding blank spaces for financial figures.**Explanation:**The document is a template for preparing the Statement of Cash Flows for Whitman Co. for the year ended December 31, 2016. It includes sections for:1. **Operating Activities**: This section reflects the cash generated or used in the company's core business operations. Adjustments are made to reconcile net loss to net cash provided by operations.2. **Investing Activities**: This part records cash transactions for the company's investments, such as the purchase or sale of assets.3. **Financing Activities**: This section outlines cash flows related to financing, including obtaining or repaying capital (e.g., issuing stocks or bonds, receiving loans, or paying dividends).Each section has placeholders labeled "Wrong" and blank spaces for inputting the appropriate financial information. This format is typically used for educational purposes to practice preparing financial statements.

The statement of cash flows is one of the primary financial statements prepared to show the reasons…

Cash..... Accounts receivable (net) Inventories..... Prepaid expenses Land .... Buildings Accumulated depreciation-buildings. Equipment........ Accumulated depreciation-equipment Total assets.....………... Accounts payable (merchandise creditors) Bonds payable.. Common stock, $25 par. Paid-in capital: Excess of issue price over par-common stock ACCOUNT Land Retained earnings ........ Total liabilities and stockholders' equity. 2016 Jan. 1 Apr. 20 Date ACCOUNT Buildings Date 2016 Jan. Dec. 2016 Jan. 2016 Jan. 1 Balance Apr. 20 Acquired for cash Date ACCOUNT Equipment Aug. 2016 Jan. The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 2016 are as follows: ACCOUNT Accumulated Depreciation-Buildings Date 2016 Jan. Dec. Assets Liabilities and Stockholders' Equity ****** 2016 Jan. Dec. Date Date Balance Realized $151,200 cash from sale ACCOUNT Bonds Payable Item Date 1 Balance 31 Depreciation for year Item Date ACCOUNT Accumulated Depreciation Equipment 1 Balance 26 Equipment discarded Dec. 31 Depreciation for year 1 7 Item 1 Balance 26 Discarded, no salvage 11 Purchased for cash Item 2016 May 1 Issued 20-year bonds ACCOUNT Common Stock, $25 par Item Item Item Balance Issued 8,000 shares of common stock for $50 per share Debit Debit Item 561,600 1 Balance 7 Issued 8,000 shares of common stock for $50 per share Debit ACCOUNT Paid-In Capital in Excess of Par-Common Stock Credit Debit 104,400 Debit 163,800 Credit Debit Debit 46,800 Debit Dec. 31, 2016 $918,000 828,900 1,268,460 29,340 315,900 1,462,500 $4,785,480 $ 922,500 270,000 317,000 758,000 2,517,980 $4,785,480 (408,600) 512,280 Credit (141,300) 270,000 Credit Credit 26,280 200,000 Debit Credit Credit 479,700 315,900 46,800 200,000 Credit ACCOUNT NO. Debit 29,340 900,900 1,462,500 ACCOUNT NO. Balance Dec. 31, 2015 Balance $ 964,800 761,940 1,162,980 35,100 479,700 900,900 (382,320) 454,680 (158,760) $4,219,020 $958,320 2,585,700 $4,219,020 Debit 0 117,000 558,000 Credit ACCOUNT NO. Debit Credit Balance Debit Debit ACCOUNT NO. 454,680 407,880 512,280 Debit Balance ACCOUNT NO. ACCOUNT NO. Balance Debit Balance ACCOUNT NO. 382,320 408,600 Balance Credit Credit 270,000 Credit ACCOUNT NO. Credit Balance 158,760 111,960 141,300 Credit 117,000 317,000 Credit 558,000 758,000