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 $917,060.00 $964,640.00 4 Accounts receivable (net) 828,490.00 761,370.00 5 Inventories 1,269,190.00 1,161,990.00 6 Prepaid expenses 30,160.00 34,400.00 7 Land 316,470.00 480,110.00 8 Buildings 1,463,160.00 900,900.00 9 Accumulated depreciation-buildings (408,380.00) (381,900.00) 10 Equipment 511,860.00 454,790.00 11 Accumulated depreciation-equipment (141,520.00) (159,060.00) 12 Total assets $4,786,490.00 $4,217,240.00 13 Liabilities and Stockholders’ Equity 14 Accounts payable (merchandise creditors) $922,800.00 $958,260.00 15 Bonds payable 270,000.00 0.00 16 Common stock, $25 par 327,000.00 117,000.00 17 Excess of paid-in capital over par 752,200.00 559,000.00 18 Retained earnings 2,514,490.00 2,582,980.00 19 Total liabilities and stockholders’ equity $4,786,490.00 $4,217,240.00 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 480,110 Apr. 20 Realized $151,080 cash from sale 163,640 316,470 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 900,900 Apr. 20 Acquired for cash 562,260 1,463,160 ACCOUNT Accumulated Depreciation––Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 381,900 Dec. 31 Depreciation for year 26,480 408,380 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 454,790 26 Discarded, no salvage 47,490 407,300 Aug. 11 Purchased for cash 104,560 511,860 ACCOUNT Accumulated Depreciation ––Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 159,060 26 Equipment discarded 47,490 111,570 Dec. 31 Depreciation for year 29,950 141,520 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 117,000 Dec. 7 Issued 8,400 shares of common stock for $48 per share 210,000 327,000 ACCOUNT Paid-In Capital in Excess of Par––Common Stock ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 559,000 Dec. 7 Issued 8,400 shares of common stock for $48 per share 193,200 752,200 ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 2,582,980 Dec. 31 Net loss 36,020 2,546,960 31 Cash dividends 32,470 2,514,490 Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Be sure to complete

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 $917,060.00 $964,640.00 4 Accounts receivable (net) 828,490.00 761,370.00 5 Inventories 1,269,190.00 1,161,990.00 6 Prepaid expenses 30,160.00 34,400.00 7 Land 316,470.00 480,110.00 8 Buildings 1,463,160.00 900,900.00 9 Accumulated depreciation-buildings (408,380.00) (381,900.00) 10 Equipment 511,860.00 454,790.00 11 Accumulated depreciation-equipment (141,520.00) (159,060.00) 12 Total assets $4,786,490.00 $4,217,240.00 13 Liabilities and Stockholders’ Equity 14 Accounts payable (merchandise creditors) $922,800.00 $958,260.00 15 Bonds payable 270,000.00 0.00 16 Common stock, $25 par 327,000.00 117,000.00 17 Excess of paid-in capital over par 752,200.00 559,000.00 18 Retained earnings 2,514,490.00 2,582,980.00 19 Total liabilities and stockholders’ equity $4,786,490.00 $4,217,240.00 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 480,110 Apr. 20 Realized $151,080 cash from sale 163,640 316,470 ACCOUNT Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 900,900 Apr. 20 Acquired for cash 562,260 1,463,160 ACCOUNT Accumulated Depreciation––Buildings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 381,900 Dec. 31 Depreciation for year 26,480 408,380 ACCOUNT Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 454,790 26 Discarded, no salvage 47,490 407,300 Aug. 11 Purchased for cash 104,560 511,860 ACCOUNT Accumulated Depreciation ––Equipment ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 159,060 26 Equipment discarded 47,490 111,570 Dec. 31 Depreciation for year 29,950 141,520 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 117,000 Dec. 7 Issued 8,400 shares of common stock for $48 per share 210,000 327,000 ACCOUNT Paid-In Capital in Excess of Par––Common Stock ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 559,000 Dec. 7 Issued 8,400 shares of common stock for $48 per share 193,200 752,200 ACCOUNT Retained Earnings ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 2,582,980 Dec. 31 Net loss 36,020 2,546,960 31 Cash dividends 32,470 2,514,490 Required: Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Be sure to complete

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4PA: Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall...

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Question

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	$917,060.00	$964,640.00
4	Accounts receivable (net)	828,490.00	761,370.00
5	Inventories	1,269,190.00	1,161,990.00
6	Prepaid expenses	30,160.00	34,400.00
7	Land	316,470.00	480,110.00
8	Buildings	1,463,160.00	900,900.00
9	Accumulated depreciation-buildings	(408,380.00)	(381,900.00)
10	Equipment	511,860.00	454,790.00
11	Accumulated depreciation-equipment	(141,520.00)	(159,060.00)
12	Total assets	$4,786,490.00	$4,217,240.00
13	Liabilities and Stockholders’ Equity
14	Accounts payable (merchandise creditors)	$922,800.00	$958,260.00
15	Bonds payable	270,000.00	0.00
16	Common stock, $25 par	327,000.00	117,000.00
17	Excess of paid-in capital over par	752,200.00	559,000.00
18	Retained earnings	2,514,490.00	2,582,980.00
19	Total liabilities and stockholders’ equity	$4,786,490.00	$4,217,240.00

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			480,110
Apr.	20	Realized $151,080 cash from sale		163,640	316,470

ACCOUNT Buildings

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
20Y2
Jan.	1	Balance			900,900
Apr.	20	Acquired for cash	562,260		1,463,160

ACCOUNT Accumulated Depreciation––Buildings

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
20Y2
Jan.	1	Balance				381,900
Dec.	31	Depreciation for year		26,480		408,380

ACCOUNT Equipment

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
20Y2
Jan.	1	Balance			454,790
	26	Discarded, no salvage		47,490	407,300
Aug.	11	Purchased for cash	104,560		511,860

ACCOUNT Accumulated Depreciation ––Equipment

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
20Y2
Jan.	1	Balance				159,060
	26	Equipment discarded	47,490			111,570
Dec.	31	Depreciation for year		29,950		141,520

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				117,000
Dec.	7	Issued 8,400 shares of common stock for $48 per share		210,000		327,000

ACCOUNT Paid-In Capital in Excess of Par––Common Stock

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
20Y2
Jan.	1	Balance				559,000
Dec.	7	Issued 8,400 shares of common stock for $48 per share		193,200		752,200

ACCOUNT Retained Earnings

					ACCOUNT NO.
					Balance
Date		Item	Debit	Credit	Debit	Credit
20Y2
Jan.	1	Balance				2,582,980
Dec.	31	Net loss	36,020			2,546,960
	31	Cash dividends	32,470			2,514,490

Required:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from (used for) operating activities. Be sure to complete

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