Statement of Cash Flows The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $ 647,180 $ 696,900 Accounts receivable (net) 588,930 537,160 Inventories 893,110 821,920 Prepaid expenses 20,710 24,590 Land 222,630 336,530 Buildings 1,029,020 634,240 Accumulated depreciation-buildings (291,230) (271,820) Equipment 362,420 320,350 Accumulated depreciation-equipment (99,670) (111,960) Total assets $3,373,100 $2,987,910 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 640,890 $ 676,300 Bonds payable 188,890 0 Common stock, $20 par 222,000 82,000 Excess of paid-in capital over par 533,000 393,000 Retained earnings 1,788,320 1,836,610 Total liabilities and stockholders’ equity $3,373,100 $2,987,910 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 336,530 Apr. 20 Realized $105,900 cash from sale 113,900 222,630 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 634,240 Apr. 20 Acquired for cash 394,780 1,029,020 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 271,820 Dec. 31 Depreciation for year 19,410 291,230 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 320,350 Jan. 26 Discarded, no salvage 35,200 285,150 Aug. 11 Purchased for cash 77,270 362,420 ACCOUNT Accumulated Depreciation-Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 111,960 Jan. 26 Equipment discarded 35,200 76,760 Dec. 31 Depreciation for year 22,910 99,670 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 May 1 Issued 15-year bonds 188,890 188,890 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 82,000 Dec. 7 Issued 7,000 shares of common stock for $40 per share 140,000 222,000 ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 393,000 Dec. 7 Issued 7,000 shares of common stock for $40 per share 140,000 533,000 ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 1,836,610 Dec. 31 Net loss 23,250 1,813,360 Dec. 31 Cash dividends 25,040 1,788,320 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.

Statement of Cash Flows The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $ 647,180 $ 696,900 Accounts receivable (net) 588,930 537,160 Inventories 893,110 821,920 Prepaid expenses 20,710 24,590 Land 222,630 336,530 Buildings 1,029,020 634,240 Accumulated depreciation-buildings (291,230) (271,820) Equipment 362,420 320,350 Accumulated depreciation-equipment (99,670) (111,960) Total assets $3,373,100 $2,987,910 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 640,890 $ 676,300 Bonds payable 188,890 0 Common stock, $20 par 222,000 82,000 Excess of paid-in capital over par 533,000 393,000 Retained earnings 1,788,320 1,836,610 Total liabilities and stockholders’ equity $3,373,100 $2,987,910 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 336,530 Apr. 20 Realized $105,900 cash from sale 113,900 222,630 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 634,240 Apr. 20 Acquired for cash 394,780 1,029,020 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 271,820 Dec. 31 Depreciation for year 19,410 291,230 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 320,350 Jan. 26 Discarded, no salvage 35,200 285,150 Aug. 11 Purchased for cash 77,270 362,420 ACCOUNT Accumulated Depreciation-Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 111,960 Jan. 26 Equipment discarded 35,200 76,760 Dec. 31 Depreciation for year 22,910 99,670 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 May 1 Issued 15-year bonds 188,890 188,890 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 82,000 Dec. 7 Issued 7,000 shares of common stock for $40 per share 140,000 222,000 ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 393,000 Dec. 7 Issued 7,000 shares of common stock for $40 per share 140,000 533,000 ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 1,836,610 Dec. 31 Net loss 23,250 1,813,360 Dec. 31 Cash dividends 25,040 1,788,320 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Statement of Cash Flows

The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows:

	Dec. 31, 20Y2	Dec. 31, 20Y1
Assets
Cash	$ 647,180	$ 696,900
Accounts receivable (net)	588,930	537,160
Inventories	893,110	821,920
Prepaid expenses	20,710	24,590
Land	222,630	336,530
Buildings	1,029,020	634,240
Accumulated depreciation-buildings	(291,230)	(271,820)
Equipment	362,420	320,350
Accumulated depreciation-equipment	(99,670)	(111,960)
Total assets	$3,373,100	$2,987,910
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$ 640,890	$ 676,300
Bonds payable	188,890	0
Common stock, $20 par	222,000	82,000
Excess of paid-in capital over par	533,000	393,000
Retained earnings	1,788,320	1,836,610
Total liabilities and stockholders’ equity	$3,373,100	$2,987,910

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			336,530
Apr. 20	Realized $105,900 cash from sale		113,900	222,630

ACCOUNT Buildings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			634,240
Apr. 20	Acquired for cash	394,780		1,029,020

ACCOUNT Accumulated Depreciation-Buildings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				271,820
Dec. 31	Depreciation for year		19,410		291,230

ACCOUNT Equipment				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			320,350
Jan. 26	Discarded, no salvage		35,200	285,150
Aug. 11	Purchased for cash	77,270		362,420

ACCOUNT Accumulated Depreciation-Equipment				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				111,960
Jan. 26	Equipment discarded	35,200			76,760
Dec. 31	Depreciation for year		22,910		99,670

ACCOUNT Bonds Payable				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
May 1	Issued 15-year bonds		188,890		188,890

ACCOUNT Common Stock, $20 par				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				82,000
Dec. 7	Issued 7,000 shares of common stock for $40 per share		140,000		222,000

ACCOUNT Paid-in Capital in Excess of Par-Common Stock				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				393,000
Dec. 7	Issued 7,000 shares of common stock for $40 per share		140,000		533,000

ACCOUNT Retained Earnings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				1,836,610
Dec. 31	Net loss	23,250			1,813,360
Dec. 31	Cash dividends	25,040			1,788,320

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.

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