Statement of Cash Flows The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $ 612,820 $ 661,020 Accounts receivable (net) 557,670 508,640 Inventories 845,690 778,280 Prepaid expenses 19,610 23,290 Land 210,810 318,670 Buildings 974,380 600,560 Accumulated depreciation-buildings (275,770) (257,380) Equipment 343,180 303,350 Accumulated depreciation-equipment (94,370) (106,020) Total assets $3,194,020 $2,830,410 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 606,860 $ 640,400 Bonds payable 178,870 0 Common stock, $20 par 210,000 78,000 Excess of paid-in capital over par 505,000 373,000 Retained earnings 1,693,290 1,739,010 Total liabilities and stockholders’ equity $3,194,020 $2,830,410 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 318,670 Apr. 20 Realized $100,300 cash from sale 107,860 210,810 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 600,560 Apr. 20 Acquired for cash 373,820 974,380 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 257,380 Dec. 31 Depreciation for year 18,390 275,770 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 303,350 Jan. 26 Discarded, no salvage 33,400 269,950 Aug. 11 Purchased for cash 73,230 343,180 ACCOUNT Accumulated Depreciation-Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 106,020 Jan. 26 Equipment discarded 33,400 72,620 Dec. 31 Depreciation for year 21,750 94,370 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 May 1 Issued 10-year bonds 178,870 178,870 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 78,000 Dec. 7 Issued 6,600 shares of common stock for $40 per share 132,000 210,000 ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 373,000 Dec. 7 Issued 6,600 shares of common stock for $40 per share 132,000 505,000 ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 1,739,010 Dec. 31 Net loss 22,010 1,717,000 Dec. 31 Cash dividends 23,710 1,693,290 Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) 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 (used for) operating activities: $fill in the blank 2 Adjustments to reconcile net loss to net cash flows from (used for) operating activities: fill in the blank 4 fill in the blank 6 Changes in current operating assets and liabilities: fill in the blank 8 fill in the blank 10 fill in the blank 12 fill in the blank 14 Net cash flows used for operating activities $fill in the blank 15 Cash flows from (used for) investing activities: $fill in the blank 17 fill in the blank 19 fill in the blank 21 Net cash flows used for investing activities fill in the blank 22 Cash flows from (used for) financing activities: $fill in the blank 24 fill in the blank 26 fill in the blank 28 Net cash flows from financing activities fill in the blank 29 $fill in the blank 31 Cash balance, January 1, 20Y2 fill in the blank 32 Cash balance, December 31, 20Y2 $fill in the blank 33

Statement of Cash Flows The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $ 612,820 $ 661,020 Accounts receivable (net) 557,670 508,640 Inventories 845,690 778,280 Prepaid expenses 19,610 23,290 Land 210,810 318,670 Buildings 974,380 600,560 Accumulated depreciation-buildings (275,770) (257,380) Equipment 343,180 303,350 Accumulated depreciation-equipment (94,370) (106,020) Total assets $3,194,020 $2,830,410 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 606,860 $ 640,400 Bonds payable 178,870 0 Common stock, $20 par 210,000 78,000 Excess of paid-in capital over par 505,000 373,000 Retained earnings 1,693,290 1,739,010 Total liabilities and stockholders’ equity $3,194,020 $2,830,410 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 318,670 Apr. 20 Realized $100,300 cash from sale 107,860 210,810 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 600,560 Apr. 20 Acquired for cash 373,820 974,380 ACCOUNT Accumulated Depreciation-Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 257,380 Dec. 31 Depreciation for year 18,390 275,770 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 303,350 Jan. 26 Discarded, no salvage 33,400 269,950 Aug. 11 Purchased for cash 73,230 343,180 ACCOUNT Accumulated Depreciation-Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 106,020 Jan. 26 Equipment discarded 33,400 72,620 Dec. 31 Depreciation for year 21,750 94,370 ACCOUNT Bonds Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 May 1 Issued 10-year bonds 178,870 178,870 ACCOUNT Common Stock, $20 par ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 78,000 Dec. 7 Issued 6,600 shares of common stock for $40 per share 132,000 210,000 ACCOUNT Paid-in Capital in Excess of Par-Common Stock ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 373,000 Dec. 7 Issued 6,600 shares of common stock for $40 per share 132,000 505,000 ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 1,739,010 Dec. 31 Net loss 22,010 1,717,000 Dec. 31 Cash dividends 23,710 1,693,290 Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) 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 (used for) operating activities: $fill in the blank 2 Adjustments to reconcile net loss to net cash flows from (used for) operating activities: fill in the blank 4 fill in the blank 6 Changes in current operating assets and liabilities: fill in the blank 8 fill in the blank 10 fill in the blank 12 fill in the blank 14 Net cash flows used for operating activities $fill in the blank 15 Cash flows from (used for) investing activities: $fill in the blank 17 fill in the blank 19 fill in the blank 21 Net cash flows used for investing activities fill in the blank 22 Cash flows from (used for) financing activities: $fill in the blank 24 fill in the blank 26 fill in the blank 28 Net cash flows from financing activities fill in the blank 29 $fill in the blank 31 Cash balance, January 1, 20Y2 fill in the blank 32 Cash balance, December 31, 20Y2 $fill in the blank 33

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter15: Statement Of Cash Flows

Section: Chapter Questions

Problem 1PB

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Question

Statement of Cash Flows

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

	Dec. 31, 20Y2	Dec. 31, 20Y1
Assets
Cash	$ 612,820		$ 661,020
Accounts receivable (net)	557,670		508,640
Inventories	845,690		778,280
Prepaid expenses	19,610		23,290
Land	210,810		318,670
Buildings	974,380		600,560
Accumulated depreciation-buildings	(275,770)		(257,380)
Equipment	343,180		303,350
Accumulated depreciation-equipment	(94,370)		(106,020)
Total assets	$3,194,020		$2,830,410
Liabilities and Stockholders' Equity
Accounts payable (merchandise creditors)	$ 606,860		$ 640,400
Bonds payable	178,870		0
Common stock, $20 par	210,000		78,000
Excess of paid-in capital over par	505,000		373,000
Retained earnings	1,693,290		1,739,010
Total liabilities and stockholders’ equity	$3,194,020		$2,830,410

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			318,670
Apr. 20	Realized $100,300 cash from sale		107,860	210,810

ACCOUNT Buildings	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			600,560
Apr. 20	Acquired for cash	373,820		974,380

ACCOUNT Accumulated Depreciation-Buildings	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				257,380
Dec. 31	Depreciation for year		18,390		275,770

ACCOUNT Equipment	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance			303,350
Jan. 26	Discarded, no salvage		33,400	269,950
Aug. 11	Purchased for cash	73,230		343,180

ACCOUNT Accumulated Depreciation-Equipment	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				106,020
Jan. 26	Equipment discarded	33,400			72,620
Dec. 31	Depreciation for year		21,750		94,370

ACCOUNT Bonds Payable	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
May 1	Issued 10-year bonds		178,870		178,870

ACCOUNT Common Stock, $20 par	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				78,000
Dec. 7	Issued 6,600 shares of common stock for $40 per share		132,000		210,000

ACCOUNT Paid-in Capital in Excess of Par-Common Stock	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				373,000
Dec. 7	Issued 6,600 shares of common stock for $40 per share		132,000		505,000

ACCOUNT Retained Earnings	ACCOUNT NO.
				Balance
Date	Item	Debit	Credit	Debit	Credit
20Y2
Jan. 1	Balance				1,739,010
Dec. 31	Net loss	22,010			1,717,000
Dec. 31	Cash dividends	23,710			1,693,290

Required:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) 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 (used for) operating activities:
	$fill in the blank 2
Adjustments to reconcile net loss to net cash flows from (used for) operating activities:
	fill in the blank 4
	fill in the blank 6
Changes in current operating assets and liabilities:
	fill in the blank 8
	fill in the blank 10
	fill in the blank 12
	fill in the blank 14
Net cash flows used for operating activities		$fill in the blank 15
Cash flows from (used for) investing activities:
	$fill in the blank 17
	fill in the blank 19
	fill in the blank 21
Net cash flows used for investing activities		fill in the blank 22
Cash flows from (used for) financing activities:
	$fill in the blank 24
	fill in the blank 26
	fill in the blank 28
Net cash flows from financing activities		fill in the blank 29
		$fill in the blank 31
Cash balance, January 1, 20Y2		fill in the blank 32
Cash balance, December 31, 20Y2		$fill in the blank 33

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