Statement of Cash FlowsIndirect Method

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

	Dec. 31, 20Y2			Dec. 31, 20Y1
Assets
Cash	$ 712,160			$ 766,980
Accounts receivable (net)	648,070			591,090
Inventories	982,780			904,440
Prepaid expenses	22,790			27,060
Land	244,980			370,320
Buildings	1,132,330			697,920
Accumulated depreciation-buildings	(320,470)			(299,110)
Equipment	398,810			352,520
Accumulated depreciation-equipment	(109,670)			(123,200)
Total assets	$3,711,780			$3,288,020
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$ 705,240			$ 744,210
Bonds payable	207,860			0
Common stock, $20 par	244,000			90,000
Paid-in capital: Excess of issue price over par-common stock	587,000			433,000
Retained earnings	1,967,680			2,020,810
Total liabilities and stockholders' equity	$3,711,780			$3,288,020

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			370,320
Apr. 20	Realized $116,600 cash from sale		125,340	244,980

ACCOUNT Buildings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			697,920
Apr. 20	Acquired for cash	434,410		1,132,330

ACCOUNT Accumulated Depreciation-Buildings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				299,110
Dec. 31	Depreciation for year		21,360		320,470

ACCOUNT Equipment				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			352,520
Jan. 26	Discarded, no salvage		38,800	313,720
Aug. 11	Purchased for cash	85,090		398,810

ACCOUNT Accumulated Depreciation-Equipment				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				123,200
Jan. 26	Equipment discarded	38,800			84,400
Dec. 31	Depreciation for year		25,270		109,670

ACCOUNT Bonds Payable				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
May 1	Issued 20-year bonds		207,860		207,860

ACCOUNT Common Stock, $20 par				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				90,000
Dec. 7	Issued 7,700 shares of common stock for $40 per share		154,000		244,000

ACCOUNT Paid-in Capital in Excess of Par-Common Stock				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				433,000
Dec. 7	Issued 7,700 shares of common stock for $40 per share		154,000		587,000

ACCOUNT Retained Earnings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				2,020,810
Dec. 31	Net loss	25,580			1,995,230
Dec. 31	Cash dividends	27,550			1,967,680

Required:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Whitman Co.
Statement of Cash Flows
For the Year Ended December 31, 20Y2
Cash flows from operating activities:
Net loss	$
Adjustments to reconcile net loss to net cashflow from operating activities:
Depreciation
Loss on sale of land
Changes in current operating assets and liabilities:
Increase in accounts receivable
Increase in inventories
Decrease in prepaid expenses
Decrease in accounts payable
Net cash flow used for operating activities		$
Cash flows from investing activities:
Cash received from land sold	$
Cash paid for acquisition of building
Cash paid for purchase of equipment
Net cash flow used for investing activities
Cash flows from financing activities:
Cash received from issuance of bonds payable	$
Cash received from issuance of common stock
Cash paid for dividends
Net cash flow from financing activities
Change in cash		$
Cash at the beginning of the year
Cash at the end of the year		$