90.2K

Verified Solution

Link Copied!

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

1		Dec. 31, 20Y2	Dec. 31, 20Y1
2	Assets
3	Cash	$918,260.00	$965,110.00
4	Accounts receivable (net)	828,050.00	761,830.00
5	Inventories	1,268,550.00	1,163,510.00
6	Prepaid expenses	28,760.00	35,720.00
7	Land	315,810.00	479,900.00
8	Buildings	1,463,300.00	900,740.00
9	Accumulated depreciation-buildings	(408,350.00)	(381,910.00)
10	Equipment	512,470.00	454,060.00
11	Accumulated depreciation-equipment	(142,270.00)	(159,730.00)
12	Total assets	$4,784,580.00	$4,219,230.00
13	Liabilities and Stockholders Equity
14	Accounts payable (merchandise creditors)	$922,360.00	$957,810.00
15	Bonds payable	270,000.00	0.00
16	Common stock, $25 par	316,000.00	116,000.00
17	Paid-in capital: Excess of issue price over parcommon stock	775,000.00	559,000.00
18	Retained earnings	2,501,220.00	2,586,420.00
19	Total liabilities and stockholders equity	$4,784,580.00	$4,219,230.00

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			479,900
Apr.	20	Realized $152,430 cash from sale		164,090	315,810

ACCOUNT Buildings

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
20Y2
Jan.	1	Balance			900,740
Apr.	20	Acquired for cash	562,560		1,463,300

ACCOUNT Accumulated DepreciationBuildings

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
20Y2
Jan.	1	Balance				381,910
Dec.	31	Depreciation for year		26,440		408,350

ACCOUNT Equipment

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
20Y2
Jan.	1	Balance			454,060
	26	Discarded, no salvage		47,260	406,800
Aug.	11	Purchased for cash	105,670		512,470

ACCOUNT Accumulated Depreciation Equipment

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
20Y2
Jan.	1	Balance				159,730
	26	Equipment discarded	47,260			112,470
Dec.	31	Depreciation for year		29,800		142,270

ACCOUNT Bonds Payable

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
20Y2
May	1	Issued 20-year bonds		270,000		270,000

ACCOUNT Common Stock $25 par

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
20Y2
Jan.	1	Balance				116,000
Dec.	7	Issued 8,000 shares of common stock for $52 per share		200,000		316,000

ACCOUNT Paid-In Capital in Excess of ParCommon Stock

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
20Y2
Jan.	1	Balance				559,000
Dec.	7	Issued 8,000 shares of common stock for $52 per share		216,000		775,000

ACCOUNT Retained Earnings

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
20Y2
Jan.	1	Balance				2,586,420
Dec.	31	Net loss	53,460			2,532,960
	31	Cash dividends	31,740			2,501,220

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Statement of Cash Flows

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Be sure to complete the heading of the statement. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Whitman Co.

Statement of Cash Flows

1	Cash flows from operating activities:
2
3	Adjustments to reconcile net loss to net cash flow from operating activities:
4
5
6	Changes in current operating assets and liabilities:
7
8
9
10
11
12
13	Cash flows from investing activities:
14
15
16
17
18
19	Cash flows from financing activities:
20
21
22
23
24
25	Cash at the beginning of the year
26	Cash at the end of the year

Answer & Explanation Solved by verified expert

See Answer