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

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Accounting

The comparative balance sheet of Whitman Co. at December 31,20Y2 and 20Y1, is as follows:
Dec. 31,20Y2 Dec. 31,20Y1
Assets
Cash $ 910,700 $ 978,540
Accounts receivable (net) 828,740 755,880
Inventories 1,256,770 1,156,590
Prepaid expenses 29,140 34,610
Land 313,280 473,560
Buildings 1,448,010 892,490
Accumulated depreciation-buildings (409,820) (382,490)
Equipment 509,990 450,800
Accumulated depreciation-equipment (140,250) (157,550)
Total assets $4,746,560 $4,202,430
Liabilities and Stockholders'Equity
Accounts payable (merchandise creditors) $ 901,850 $ 951,680
Bonds payable 265,810 0
Common stock, $20 par 314,000 116,000
Paid-in capital: Excess of issue price over par-commonstock 752,000 554,000
Retained earnings 2,512,900 2,580,750
Total liabilities and stockholders' equity $4,746,560 $4,202,430
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 473,560
Apr. 20 Realized $149,100 cash from sale 160,280 313,280
ACCOUNT Buildings ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 892,490
Apr. 20 Acquired for cash 555,520 1,448,010
ACCOUNT AccumulatedDepreciation-Buildings ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 382,490
Dec. 31 Depreciation for year 27,330 409,820
ACCOUNT Equipment ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 450,800
Jan. 26 Discarded, no salvage 49,600 401,200
Aug. 11 Purchased for cash 108,790 509,990
ACCOUNT AccumulatedDepreciation-Equipment ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 157,550
Jan. 26 Equipment discarded 49,600 107,950
Dec. 31 Depreciation for year 32,300 140,250
ACCOUNT BondsPayable ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
May 1 Issued 10-year bonds 265,810 265,810
ACCOUNT Common Stock, $20par ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 116,000
Dec. 7 Issued 9,900 shares of common
stock for $40 per share 198,000 314,000
ACCOUNT Paid-in Capital in Excess ofPar-Common Stock ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 554,000
Dec. 7 Issued 9,900 shares of common
stock for $40 per share 198,000 752,000
ACCOUNT RetainedEarnings ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Jan. 1 Balance 2,580,750
Dec. 31 Net loss 32,670 2,548,080
Dec. 31 Cash dividends 35,180 2,512,900
Required:
Prepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities. Use the minus signto indicate cash out flows, cash payments, decreases in cash, orany negative adjustments.
Whitman Co.
Statement of Cash Flows
For the Year Ended December 31, 20Y2
Cash flows from operating activities:
$
Adjustments to reconcile net loss to net cashflow fromoperating activities:
Changes in current operating assets and liabilities:
Net cash flow used for operating activities $
Cash flows from investing activities:
$
Net cash flow used for investing activities
Cash flows from financing activities:
$
Net cash flow from financing activities
$
Cash at the beginning of the year
Cash at the end of the year $

Answer & Explanation Solved by verified expert

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Answer-

WHITEMAN CO.
STATEMENT OF CASH FLOWS (USING INDIRECT METHOD)
FOR THE YEAR ENDED 31 DECEMBER 20Y2

Particulars		Amount
		$
Cash flow from operating activities
Net Income		-32670
Adjustments to reconcile net income to net cash provided by operating activities
Adjustment for non cash effects

Depreciation	($27330+$32300)	59630

Change in operating assets & liabilities

Increase in accounts receivable		-72860
Increase in inventory		-100180
Decrease in prepaid expenses		5470
Decrease in accounts payable		-49830

Net cash flow from operating activities (a)		-190440

Cash Flow from Investing activities

New equipment purchased		-108790
Building purchased		-555520
Land sold		160280
Net cash Flow from Investing activities (b)		-504030

Cash Flow from Financing activities

Cash dividends paid		-35180
Common stock issued		396000
Bonds issued		265810

Net cash Flow from Financing activities (c)		626630

Net Change in cash c=a+b+c		-67840
Beginning cash balance		978540

Closing cash balance		910700

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In: AccountingThe comparative balance sheet of Whitman Co. at December 31,20Y2 and 20Y1, is as follows:...The comparative balance sheet of Whitman Co. at December 31,20Y2 and 20Y1, is as follows: Dec. 31,20Y2 Dec. 31,20Y1AssetsCash$ 910,700$ 978,540Accounts receivable (net)828,740755,880Inventories1,256,7701,156,590Prepaid expenses29,14034,610Land313,280473,560Buildings1,448,010892,490Accumulated depreciation-buildings(409,820)(382,490)Equipment509,990450,800Accumulated depreciation-equipment(140,250)(157,550)Total assets$4,746,560$4,202,430Liabilities and Stockholders'EquityAccounts payable (merchandise creditors)$ 901,850$ 951,680Bonds payable265,8100Common stock, $20 par314,000116,000Paid-in capital: Excess of issue price over par-commonstock752,000554,000Retained earnings2,512,9002,580,750Total liabilities and stockholders' equity$4,746,560$4,202,430The noncurrent asset, noncurrent liability, and stockholders’equity accounts for 20Y2 are as follows:ACCOUNT LandACCOUNT NO.BalanceDateItemDebitCreditDebitCredit20Y2Jan. 1Balance473,560Apr. 20Realized $149,100 cash from sale160,280313,280ACCOUNT BuildingsACCOUNT NO.BalanceDateItemDebitCreditDebitCredit20Y2Jan. 1Balance892,490Apr. 20Acquired for cash555,5201,448,010ACCOUNT AccumulatedDepreciation-BuildingsACCOUNT NO.BalanceDateItemDebitCreditDebitCredit20Y2Jan. 1Balance382,490Dec. 31Depreciation for year27,330409,820ACCOUNT EquipmentACCOUNT NO.BalanceDateItemDebitCreditDebitCredit20Y2Jan. 1Balance450,800Jan. 26Discarded, no salvage49,600401,200Aug. 11Purchased for cash108,790509,990ACCOUNT AccumulatedDepreciation-EquipmentACCOUNT NO.BalanceDateItemDebitCreditDebitCredit20Y2Jan. 1Balance157,550Jan. 26Equipment discarded49,600107,950Dec. 31Depreciation for year32,300140,250ACCOUNT BondsPayableACCOUNT NO.BalanceDateItemDebitCreditDebitCredit20Y2May 1Issued 10-year bonds265,810265,810ACCOUNT Common Stock, $20parACCOUNT NO.BalanceDateItemDebitCreditDebitCredit20Y2Jan. 1Balance116,000Dec. 7Issued 9,900 shares of commonstock for $40 per share198,000314,000ACCOUNT Paid-in Capital in Excess ofPar-Common StockACCOUNT NO.BalanceDateItemDebitCreditDebitCredit20Y2Jan. 1Balance554,000Dec. 7Issued 9,900 shares of commonstock for $40 per share198,000752,000ACCOUNT RetainedEarningsACCOUNT NO.BalanceDateItemDebitCreditDebitCredit20Y2Jan. 1Balance2,580,750Dec. 31Net loss32,6702,548,080Dec. 31Cash dividends35,1802,512,900Required:Prepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities. Use the minus signto indicate cash out flows, cash payments, decreases in cash, orany negative adjustments.Whitman Co.Statement of Cash FlowsFor the Year Ended December 31, 20Y2Cash flows from operating activities:$Adjustments to reconcile net loss to net cashflow fromoperating activities:Changes in current operating assets and liabilities:Net cash flow used for operating activities$Cash flows from investing activities:$Net cash flow used for investing activitiesCash flows from financing activities:$Net cash flow from financing activities$Cash at the beginning of the yearCash at the end of the year$

ACCOUNT Land				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			473,560
Apr. 20	Realized $149,100 cash from sale		160,280	313,280

ACCOUNT Buildings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			892,490
Apr. 20	Acquired for cash	555,520		1,448,010

ACCOUNT AccumulatedDepreciation-Buildings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				382,490
Dec. 31	Depreciation for year		27,330		409,820

ACCOUNT BondsPayable				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
May 1	Issued 10-year bonds		265,810		265,810

ACCOUNT Common Stock, $20par				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				116,000
Dec. 7	Issued 9,900 shares of common stock for $40 per share		198,000		314,000

	Dec. 31,20Y2	Dec. 31,20Y1
Assets
Cash	$ 910,700	$ 978,540
Accounts receivable (net)	828,740	755,880
Inventories	1,256,770	1,156,590
Prepaid expenses	29,140	34,610
Land	313,280	473,560
Buildings	1,448,010	892,490
Accumulated depreciation-buildings	(409,820)	(382,490)
Equipment	509,990	450,800
Accumulated depreciation-equipment	(140,250)	(157,550)
Total assets	$4,746,560	$4,202,430
Liabilities and Stockholders'Equity
Accounts payable (merchandise creditors)	$ 901,850	$ 951,680
Bonds payable	265,810	0
Common stock, $20 par	314,000	116,000
Paid-in capital: Excess of issue price over par-commonstock	752,000	554,000
Retained earnings	2,512,900	2,580,750
Total liabilities and stockholders' equity	$4,746,560	$4,202,430

ACCOUNT Equipment				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			450,800
Jan. 26	Discarded, no salvage		49,600	401,200
Aug. 11	Purchased for cash	108,790		509,990

ACCOUNT AccumulatedDepreciation-Equipment				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				157,550
Jan. 26	Equipment discarded	49,600			107,950
Dec. 31	Depreciation for year		32,300		140,250

ACCOUNT Paid-in Capital in Excess ofPar-Common Stock				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				554,000
Dec. 7	Issued 9,900 shares of common stock for $40 per share		198,000		752,000

ACCOUNT RetainedEarnings				ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				2,580,750
Dec. 31	Net loss	32,670			2,548,080
Dec. 31	Cash dividends	35,180			2,512,900

Whitman Co.
Statement of Cash Flows
For the Year Ended December 31, 20Y2
Cash flows from operating activities:
	$
Adjustments to reconcile net loss to net cashflow fromoperating activities:


Changes in current operating assets and liabilities:




Net cash flow used for operating activities		$
Cash flows from investing activities:
	$


Net cash flow used for investing activities
Cash flows from financing activities:
	$


Net cash flow from financing activities
		$
Cash at the beginning of the year
Cash at the end of the year		$