The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows:Dec. 31, 20Y2 Dec. 31, 20Y1AssetsCash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 918,000 $ 964,800Accounts receivable (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 828,900 761,940Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,268,460 1,162,980Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,340 35,100Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315,900 479,700Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,462,500 900,900Accumulated depreciation—buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . (408,600) (382,320)Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 512,280 454,680Accumulated depreciation—equipment . . . . . . . . . . . . . . . . . . . . . . . . . . (141,300) (158,760)Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,785,480 $4,219,020Liabilities and Stockholders’ EquityAccounts payable (merchandise creditors) . . . . . . . . . . . . . . . . . . . . . . . $ 922,500 $ 958,320Bonds payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270,000 0Common stock, $25 par . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317,000 117,000Paid-in capital: Excess of issue price over par—common stock . . . . . 758,000 558,000Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,517,980 2,585,700Total liabilities and stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . $4,785,480 $4,219,020The noncurrent asset, noncurrent liability, and stockholders’ equity accounts for 20Y2are as follows:ACCOUNT Land ACCOUNT NO.BalanceDate Item Debit Credit Debit Credit20Y2BalanceRealized $151,200 cash from sale120Jan.Apr.479,700163,800 315,900Net cash flow fromoperating activities,$(169,600)ExcelACCOUNT Buildings ACCOUNT NO.BalanceDate Item Debit Credit Debit Credit20Y2BalanceAcquired for cash120Jan.Apr.900,900561,600 1,462,500ACCOUNT Accumulated Depreciation––Buildings ACCOUNT NO.BalanceDate Item Debit Credit Debit Credit20Y2BalanceDepreciation for year131Jan.Dec.382,32026,280 408,600ACCOUNT Equipment ACCOUNT NO.BalanceDate Item Debit Credit Debit Credit20Y2BalanceDiscarded, no salvagePurchased for cash12611Jan.Aug.454,680407,880512,28046,800104,400ACCOUNT Accumulated Depreciation––Equipment ACCOUNT NO.BalanceDate Item Debit Credit Debit Credit20Y2BalanceEquipment discardedDepreciation for year12631Jan.Dec.158,760111,96029,340 141,30046,800ACCOUNT Bonds Payable ACCOUNT NO.BalanceDate Item Debit Credit Debit Credit20Y2May 1 Issued 20-year bonds 270,000 270,000ACCOUNT Common Stock, $25 par ACCOUNT NO.BalanceDate Item Debit Credit Debit Credit20Y2BalanceIssued 8,000 shares of commonstock for $50 per share17Jan.Dec.117,000200,000 317,000 ACCOUNT Paid-In Capital in Excess of Par––Common Stock ACCOUNT NO.BalanceDate Item Debit Credit Debit Credit20Y2BalanceIssued 8,000 shares of commonstock for $50 per share17Jan.Dec.558,000200,000 758,000ACCOUNT Retained Earnings ACCOUNT NO.BalanceDate Item Debit Credit Debit Credit20Y2BalanceNet lossCash dividends13131Jan.Dec.2,585,7002,550,3802,517,98035,32032,400InstructionsPrepare a statement of cash flows, using the indirect method of presenting cash flowsfrom operating activities.
The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows:
Dec. 31, 20Y2 Dec. 31, 20Y1
Assets
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 918,000 $ 964,800
Accounts receivable (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 828,900 761,940
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,268,460 1,162,980
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,340 35,100
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315,900 479,700
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,462,500 900,900
Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 512,280 454,680
Accumulated depreciation—equipment . . . . . . . . . . . . . . . . . . . . . . . . . . (141,300) (158,760)
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,785,480 $4,219,020
Liabilities and Stockholders’ Equity
Accounts payable (merchandise creditors) . . . . . . . . . . . . . . . . . . . . . . . $ 922,500 $ 958,320
Bonds payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270,000 0
Common stock, $25 par . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317,000 117,000
Paid-in capital: Excess of issue price over par—common stock . . . . . 758,000 558,000
Total liabilities and stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . $4,785,480 $4,219,020
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
Balance
Realized $151,200 cash from sale
1
20
Jan.
Apr.
479,700
163,800 315,900
Net cash flow from
operating activities,
$(169,600)
Excel
ACCOUNT Buildings ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Balance
Acquired for cash
1
20
Jan.
Apr.
900,900
561,600 1,462,500
ACCOUNT Accumulated Depreciation––Buildings ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Balance
Depreciation for year
1
31
Jan.
Dec.
382,320
26,280 408,600
ACCOUNT Equipment ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Balance
Discarded, no salvage
Purchased for cash
1
26
11
Jan.
Aug.
454,680
407,880
512,280
46,800
104,400
ACCOUNT Accumulated Depreciation––Equipment ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Balance
Equipment discarded
Depreciation for year
1
26
31
Jan.
Dec.
158,760
111,960
29,340 141,300
46,800
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
Balance
Issued 8,000 shares of common
stock for $50 per share
1
7
Jan.
Dec.
117,000
200,000 317,000
ACCOUNT Paid-In Capital in Excess of Par––Common Stock ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Balance
Issued 8,000 shares of common
stock for $50 per share
1
7
Jan.
Dec.
558,000
200,000 758,000
ACCOUNT Retained Earnings ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
20Y2
Balance
Net loss
Cash dividends
1
31
31
Jan.
Dec.
2,585,700
2,550,380
2,517,980
35,320
32,400
Instructions
Prepare a statement of
from operating activities.
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