The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $ 552,690 $ 594,240 Accounts receivable (net) 502,950 458,730 Inventories 762,710 701,920 Prepaid expenses 17,690 21,000 Land 190,130 287,400 Buildings 878,780 541,640 Accumulated depreciation-buildings (248,710) (232,130) Equipment 309,510 273,580 Accumulated depreciation-equipment (85,110) (95,620) Total assets $2,880,640 $2,550,760 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 547,320 $ 577,560 Bonds payable 161,320 0 Common stock, $20 par 190,000 70,000 Paid-in capital: Excess of issue price over par-common stock 456,000 336,000 Retained earnings 1,526,000 1,567,200 Total liabilities and stockholders’ equity $2,880,640 $2,550,760 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 287,400 Apr. 20 Realized $90,500 cash from sale 97,270 190,130 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 541,640 Apr. 20 Acquired for cash 337,140 878,780 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 232,130 Dec. 31 Depreciation for year 16,580 248,710 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 273,580 Jan. 26 Discarded, no salvage 30,100 243,480 Aug. 11 Purchased for cash 66,030 309,510 ACCOUNT Accumulated Depreciation-Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 95,620 Jan. 26 Equipment discarded 30,100 65,520 Dec. 31 Depreciation for year 19,590 85,110 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 May 1 Issued 20-year bonds 161,320 161,320 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 70,000 Dec. 7 Issued 6,000 shares of commonstock for $40 per share 120,000 190,000 ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 336,000 Dec. 7 Issued 6,000 shares of commonstock for $40 per share 120,000 456,000 ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 1,567,200 Dec. 31 Net loss 19,840 1,547,360 Dec. 31 Cash dividends 21,360 1,526,000 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 outflows, 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: $ Adjustments to reconcile net loss to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow used for operating activities $ Cash flows from (used for) investing activities: $ Net cash flow used for investing activities Cash flows from (used for) financing activities: $ Net cash flow from financing activities $ Cash at the beginning of the year Cash at the end of the year $

The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $ 552,690 $ 594,240 Accounts receivable (net) 502,950 458,730...

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

	Dec. 31, 20Y2	Dec. 31, 20Y1
Assets
Cash	$ 552,690		$ 594,240
Accounts receivable (net)	502,950		458,730
Inventories	762,710		701,920
Prepaid expenses	17,690		21,000
Land	190,130		287,400
Buildings	878,780		541,640
Accumulated depreciation-buildings	(248,710)		(232,130)
Equipment	309,510		273,580
Accumulated depreciation-equipment	(85,110)		(95,620)
Total assets	$2,880,640		$2,550,760
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$ 547,320		$ 577,560
Bonds payable	161,320		0
Common stock, $20 par	190,000		70,000
Paid-in capital: Excess of issue price over par-common stock	456,000		336,000
Retained earnings	1,526,000		1,567,200
Total liabilities and stockholders’ equity	$2,880,640		$2,550,760

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			287,400
Apr. 20	Realized $90,500 cash from sale		97,270	190,130

ACCOUNT Buildings	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			541,640
Apr. 20	Acquired for cash	337,140		878,780

ACCOUNT Accumulated Depreciation-Buildings	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				232,130
Dec. 31	Depreciation for year		16,580		248,710

ACCOUNT Equipment	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			273,580
Jan. 26	Discarded, no salvage		30,100	243,480
Aug. 11	Purchased for cash	66,030		309,510

ACCOUNT Accumulated Depreciation-Equipment	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				95,620
Jan. 26	Equipment discarded	30,100			65,520
Dec. 31	Depreciation for year		19,590		85,110

ACCOUNT Bonds Payable	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
May 1	Issued 20-year bonds		161,320		161,320

ACCOUNT Common Stock, $20 par	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				70,000
Dec. 7	Issued 6,000 shares of common stock for $40 per share		120,000		190,000

ACCOUNT Paid-in Capital in Excess of Par-Common Stock	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				336,000
Dec. 7	Issued 6,000 shares of common stock for $40 per share		120,000		456,000

ACCOUNT Retained Earnings	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				1,567,200
Dec. 31	Net loss	19,840			1,547,360
Dec. 31	Cash dividends	21,360			1,526,000

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 outflows, 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:
	$
Adjustments to reconcile net loss to net cash flow from operating activities:


Changes in current operating assets and liabilities:




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


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


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

Jun 10, 2022

SOLUTION.PDF

The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $ 552,690 $ 594,240 Accounts receivable (net) 502,950 458,730...

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