The comparative balance sheet of Whitman Co. at December 31, 2016 and 2015, is as follows: Dec. 31, 2016 Dec. 31, 2015 Assets Cash 918,000 964,800 Accounts Receivable (net) 828,900 761,940 Inventories 1,268,460 1,162,980 Prepaid Expenses 29,340 35,100 Land 315,900 479,700 Buildings 1,462,500 900,900 Accumulated depreciation-buildings (408,600) (382,320) Equipment 512,280 454,680 Accumulated depreciation-equipment (141,300) (158,760) Total Assets 4,785,480 4,219,020 Liabilities and Stockholders’ Equity Accounts Payable 922,500 958,320 Bonds Payable 270,000 0 Common Stock, $25 par 317,000 117,000 Paid-In capital: Excess of par, common stock 758,000 558,000 Retained earnings 2,517,980 2,585,700 Total liabilities and S. equity 4,785,480 4,219,020 The noncurrent asset, noncurrent liability, and stockholders’ equity accounts for 2016 are as follows: Account: LAND Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 479,700 Apr. 20 Realized $151,200 cash from sale 163,800 315,900 Account: Buildings Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 900,900 Apr. 20 Acquired for cash 561,600 1,462,500 Account: Accum. Depr.-Buildings Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 382,320 Dec. 31 Depreciation for year 26,280 408,600 Account: Equipment Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 454,680 Jan. 26 Discarded, no salvage 46,800 407,880 Aug. 11 Purchased for cash 104,400 512,280 Account: Accum. Depr.-Equipment Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 158,760 Jan. 26 Equipment discarded 46,800 111,960 Dec. 31 Depreciation for year 29,340 141,300 Account: Bonds Payable Balance Date Item Debit Credit Debit Credit May 1 Issued 20-year bonds 270,000 270,000 Account: Common Stock, $25 par Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 117,000 Dec. 7 Issued 8,000 shares of common stock for $50 per share 200,000 317,000 Account: Paid-In Capital in Excess of Par, Common Stock Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 558,000 Dec. 7 Issued 8,000 shares of common stock for $50 per share 200,000 758,000 Account: Retained Earnings Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 2,585,700 Dec. 31 Net Loss 35,320 2,550,380 Dec. 31 Cash Dividends 32,400 2,517,980 Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

The comparative balance sheet of Whitman Co. at December 31, 2016 and 2015, is as follows: Dec. 31, 2016 Dec. 31, 2015 Assets Cash 918,000 964,800 Accounts Receivable (net) 828,900 761,940 Inventories 1,268,460 1,162,980 Prepaid Expenses 29,340 35,100 Land 315,900 479,700 Buildings 1,462,500 900,900 Accumulated depreciation-buildings (408,600) (382,320) Equipment 512,280 454,680 Accumulated depreciation-equipment (141,300) (158,760) Total Assets 4,785,480 4,219,020 Liabilities and Stockholders’ Equity Accounts Payable 922,500 958,320 Bonds Payable 270,000 0 Common Stock, $25 par 317,000 117,000 Paid-In capital: Excess of par, common stock 758,000 558,000 Retained earnings 2,517,980 2,585,700 Total liabilities and S. equity 4,785,480 4,219,020 The noncurrent asset, noncurrent liability, and stockholders’ equity accounts for 2016 are as follows: Account: LAND Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 479,700 Apr. 20 Realized $151,200 cash from sale 163,800 315,900 Account: Buildings Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 900,900 Apr. 20 Acquired for cash 561,600 1,462,500 Account: Accum. Depr.-Buildings Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 382,320 Dec. 31 Depreciation for year 26,280 408,600 Account: Equipment Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 454,680 Jan. 26 Discarded, no salvage 46,800 407,880 Aug. 11 Purchased for cash 104,400 512,280 Account: Accum. Depr.-Equipment Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 158,760 Jan. 26 Equipment discarded 46,800 111,960 Dec. 31 Depreciation for year 29,340 141,300 Account: Bonds Payable Balance Date Item Debit Credit Debit Credit May 1 Issued 20-year bonds 270,000 270,000 Account: Common Stock, $25 par Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 117,000 Dec. 7 Issued 8,000 shares of common stock for $50 per share 200,000 317,000 Account: Paid-In Capital in Excess of Par, Common Stock Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 558,000 Dec. 7 Issued 8,000 shares of common stock for $50 per share 200,000 758,000 Account: Retained Earnings Balance Date Item Debit Credit Debit Credit Jan. 1 Balance 2,585,700 Dec. 31 Net Loss 35,320 2,550,380 Dec. 31 Cash Dividends 32,400 2,517,980 Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

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

The comparative balance sheet of Whitman Co. at December 31, 2016 and 2015, is as follows:

	Dec. 31, 2016	Dec. 31, 2015
Assets
Cash	918,000	964,800
Accounts Receivable (net)	828,900	761,940
Inventories	1,268,460	1,162,980
Prepaid Expenses	29,340	35,100
Land	315,900	479,700
Buildings	1,462,500	900,900
Accumulated depreciation-buildings	(408,600)	(382,320)
Equipment	512,280	454,680
Accumulated depreciation-equipment	(141,300)	(158,760)
Total Assets	4,785,480	4,219,020
Liabilities and Stockholders’ Equity
Accounts Payable	922,500	958,320
Bonds Payable	270,000	0
Common Stock, $25 par	317,000	117,000
Paid-In capital: Excess of par, common stock	758,000	558,000
Retained earnings	2,517,980	2,585,700
Total liabilities and S. equity	4,785,480	4,219,020

The noncurrent asset, noncurrent liability, and stockholders’ equity accounts for 2016 are as follows:

Account:	LAND			Balance
Date	Item	Debit	Credit	Debit	Credit
Jan. 1	Balance			479,700
Apr. 20	Realized $151,200 cash from sale		163,800	315,900

Account:	Buildings			Balance
Date	Item	Debit	Credit	Debit	Credit
Jan. 1	Balance			900,900
Apr. 20	Acquired for cash	561,600		1,462,500

Account:	Accum. Depr.-Buildings			Balance
Date	Item	Debit	Credit	Debit	Credit
Jan. 1	Balance				382,320
Dec. 31	Depreciation for year		26,280		408,600

Account:	Equipment			Balance
Date	Item	Debit	Credit	Debit	Credit
Jan. 1	Balance			454,680
Jan. 26	Discarded, no salvage		46,800	407,880
Aug. 11	Purchased for cash	104,400		512,280

Account:	Accum. Depr.-Equipment			Balance
Date	Item	Debit	Credit	Debit	Credit
Jan. 1	Balance				158,760
Jan. 26	Equipment discarded	46,800			111,960
Dec. 31	Depreciation for year		29,340		141,300

Account:	Bonds Payable			Balance
Date	Item	Debit	Credit	Debit	Credit
May 1	Issued 20-year bonds		270,000		270,000

Account:	Common Stock, $25 par			Balance
Date	Item	Debit	Credit	Debit	Credit
Jan. 1	Balance				117,000
Dec. 7	Issued 8,000 shares of common stock for $50 per share		200,000		317,000

Account:	Paid-In Capital in Excess of Par, Common Stock			Balance
Date	Item	Debit	Credit	Debit	Credit
Jan. 1	Balance				558,000
Dec. 7	Issued 8,000 shares of common stock for $50 per share		200,000		758,000

Account:	Retained Earnings			Balance
Date	Item	Debit	Credit	Debit	Credit
Jan. 1	Balance				2,585,700
Dec. 31	Net Loss	35,320			2,550,380
Dec. 31	Cash Dividends	32,400			2,517,980

Instructions

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.

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