Statement of Cash Flows—Indirect Method
The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows:
Dec. 31, 20Y2 | Dec. 31, 20Y1 | ||||
Assets | |||||
Cash | $ 575,690 | $ 620,980 | |||
Accounts receivable (net) | 523,880 | 477,820 | |||
Inventories | 794,450 | 731,130 | |||
Prepaid expenses | 18,420 | 21,880 | |||
Land | 198,040 | 299,360 | |||
Buildings | 915,350 | 564,180 | |||
Accumulated depreciation-buildings | (259,060) | (241,790) | |||
Equipment | 322,390 | 284,970 | |||
Accumulated depreciation-equipment | (88,660) | (99,590) | |||
Total assets | $3,000,500 | $2,658,940 | |||
Liabilities and Stockholders' Equity | |||||
Accounts payable (merchandise creditors) | $ 570,100 | $ 601,600 | |||
Bonds payable | 168,030 | 0 | |||
Common stock, $20 par | 197,000 | 73,000 | |||
Paid-in capital: Excess of issue price over par-common stock | 474,000 | 350,000 | |||
Retained earnings | 1,591,370 | 1,634,340 | |||
Total liabilities and stockholders' equity | $3,000,500 | $2,658,940 |
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 | 299,360 | |||
Apr. 20 | Realized $94,200 cash from sale | 101,320 | 198,040 |
ACCOUNT Buildings | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
Jan. 1 | Balance | 564,180 | |||
Apr. 20 | Acquired for cash | 351,170 | 915,350 |
ACCOUNT Accumulated Depreciation-Buildings | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
Jan. 1 | Balance | 241,790 | |||
Dec. 31 | Depreciation for year | 17,270 | 259,060 |
ACCOUNT Equipment | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
Jan. 1 | Balance | 284,970 | |||
Jan. 26 | Discarded, no salvage | 31,300 | 253,670 | ||
Aug. 11 | Purchased for cash | 68,720 | 322,390 |
ACCOUNT Accumulated Depreciation-Equipment | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
Jan. 1 | Balance | 99,590 | |||
Jan. 26 | Equipment discarded | 31,300 | 68,290 | ||
Dec. 31 | Depreciation for year | 20,370 | 88,660 |
ACCOUNT Bonds Payable | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
May 1 | Issued 20-year bonds | 168,030 | 168,030 |
ACCOUNT Common Stock, $20 par | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
Jan. 1 | Balance | 73,000 | |||
Dec. 7 | Issued 6,200 shares of common stock for $40 per share |
124,000 | 197,000 |
ACCOUNT Paid-in Capital in Excess of Par-Common Stock | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
Jan. 1 | Balance | 350,000 | |||
Dec. 7 | Issued 6,200 shares of common stock for $40 per share |
124,000 | 474,000 |
ACCOUNT Retained Earnings | ACCOUNT NO. | ||||
Balance | |||||
Date | Item | Debit | Credit | Debit | Credit |
20Y2 | |||||
Jan. 1 | Balance | 1,634,340 | |||
Dec. 31 | Net loss | 20,690 | 1,613,650 | ||
Dec. 31 | Cash dividends | 22,280 | 1,591,370 |
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 out flows, 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 cashflow from operating activities: | ||
Changes in current operating assets and liabilities: | ||
Net cash flow used for operating activities | $ | |
Cash flows from investing activities: | ||
$ | ||
Net cash flow used for investing activities | ||
Cash flows from financing activities: | ||
$ | ||
Net cash flow from financing activities | ||
$ | ||
Cash at the beginning of the year | ||
Cash at the end of the year |
Whitman Co. Statement of Cash Flow For The Year Ended December 31, 20Y2 |
||
Amount $ | Amount $ | |
Cash flow from operating activities: | ||
Net Loss | -20,690 | |
Adjustments to reconcile net loss to net cashflow from operating activities: | ||
Depreciation expense ( building) | 17,270 | |
Depreciation expense (equipment) | 20,370 | |
Loss on sale from land (101,320 - 94,200) | 7,120 | |
Changes in current operating assets and liabilities: | ||
Increase in accounts receivable | - 46,060 | |
Increase in inventories | - 63,320 | |
Decrease in prepaid expenses | 3,460 | |
Decrease in accounts payable | - 31,500 | |
- 92,660 | ||
Net cash flow used for operating activities | -113,350 | |
Cash flow from investing activities: | ||
Proceeds from sale of land | 94,200 | |
Payment for acquisition of building | -351,170 | |
Payment for purchase of equipment | -68,720 | |
Net cash flow used for investing activities | -325,690 | |
Cash flow from financing activities: | ||
Proceeds from issue of bonds payable | 168,030 | |
Proceeds from issue of common stock | 248,000 | |
Payment of cash dividend | - 22,280 | |
Net cash flow from financing activities | 393,750 | |
Net decrease in cash | -45,290 | |
Cash at the beginning of the year | 620,980 | |
Cash at the end of the year | 575,690 |
Statement of Cash Flows—Indirect Method The comparative balance sheet of Whitman Co. at December 31, 20Y2...
Statement of Cash Flows—Indirect Method The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $ 792,160 $ 851,660 Accounts receivable (net) 720,870 657,490 Inventories 1,093,180 1,006,040 Prepaid expenses 25,350 30,100 Land 272,500 411,920 Buildings 1,259,530 776,320 Accumulated depreciation-buildings (356,470) (332,710) Equipment 443,610 392,120 Accumulated depreciation-equipment (121,990) (137,040) Total assets $4,128,740 $3,655,900 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 784,460 $ 827,810 Bonds payable...
Statement of Cash Flows—Indirect Method The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $ 606,710 $ 655,870 Accounts receivable (net) 552,110 503,570 Inventories 837,260 770,520 Prepaid expenses 19,410 23,050 Land 208,710 315,490 Buildings 964,670 594,580 Accumulated depreciation-buildings (273,020) (254,820) Equipment 339,760 300,320 Accumulated depreciation-equipment (93,430) (104,960) Total assets $3,162,180 $2,803,620 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 600,810 $ 634,010 Bonds payable...
Statement of Cash Flows—Indirect Method The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $ 749,880 $ 807,890 Accounts receivable (net) 682,390 622,400 Inventories 1,034,830 952,350 Prepaid expenses 24,000 28,500 Land 257,960 389,940 Buildings 1,192,310 734,880 Accumulated depreciation-buildings (337,450) (314,950) Equipment 419,930 371,190 Accumulated depreciation-equipment (115,480) (129,730) Total assets $3,908,370 $3,462,470 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 742,590 $ 783,620 Bonds payable...
Statement of Cash Flows—Indirect Method The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $ 809,500 $ 869,830 Accounts receivable (net) 736,650 671,890 Inventories 1,117,110 1,028,070 Prepaid expenses 25,900 30,760 Land 278,470 420,940 Buildings 1,287,110 793,310 Accumulated depreciation-buildings (364,280) (339,990) Equipment 453,320 400,700 Accumulated depreciation-equipment (124,660) (140,040) Total assets $4,219,120 $3,735,470 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 801,630 $ 845,930 Bonds payable...
The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $ 709,720 $ 763,230 Accounts receivable (net) 645,850 589,070 Inventories 979,410 901,340 Prepaid expenses 22,710 26,970 Land 244,140 369,050 Buildings 1,128,450 695,530 Accumulated depreciation-buildings (319,370) (298,080) Equipment 397,440 351,310 Accumulated depreciation-equipment (109,300) (122,780) Total assets $3,699,050 $3,275,640 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 702,820 $ 741,660 Bonds payable 207,150 0 Common stock, $20...
Statement of Cash Flows—Indirect Method The comparative balance sheet of Coulson, Inc. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $300,600 $337,800 Accounts receivable (net) 704,400 609,600 Inventories 918,600 865,800 Prepaid expenses 18,600 26,400 Land 990,000 1,386,000 Buildings 1,980,000 990,000 Accumulated depreciation—buildings (397,200) (366,000) Equipment 660,600 529,800 Accumulated depreciation—equipment (133,200) (162,000) Total assets $5,042,400 $4,217,400 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $594,000 $631,200 Income taxes payable 26,400 21,600 Bonds...
The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $ 738,430 $ 794,580 Accounts receivable (net) 671,970 612,900 Inventories 1,019,030 937,810 Prepaid expenses 23,630 28,060 Land 254,020 383,980 Buildings 1,174,100 723,660 Accumulated depreciation-buildings (332,290) (310,140) Equipment 413,520 365,520 Accumulated depreciation-equipment (113,720) (127,750) Total assets $3,848,690 $3,408,620 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $ 731,250 $ 771,660 Bonds payable 215,530 0 Common stock, $20...
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 $918,790.00 $964,070.00 4 Accounts receivable (net) 828,170.00 761,040.00 5 Inventories 1,268,620.00 1,163,480.00 6 Prepaid expenses 29,330.00 34,930.00 7 Land 316,340.00 480,430.00 8 Buildings 1,461,710.00 900,600.00 9 Accumulated depreciation-buildings (408,700.00) (382,020.00) 10 Equipment 511,330.00 455,280.00 11 Accumulated depreciation-equipment (140,790.00) (158,240.00) 12 Total assets $4,784,800.00 $4,219,570.00 13 Liabilities and Stockholders’ Equity 14 Accounts payable (merchandise...
Statement of Cash FlowsThe comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1AssetsCash$ 612,820$ 661,020Accounts receivable (net)557,670508,640Inventories845,690778,280Prepaid expenses19,61023,290Land210,810318,670Buildings974,380600,560Accumulated depreciation-buildings(275,770)(257,380)Equipment343,180303,350Accumulated depreciation-equipment(94,370)(106,020)Total assets$3,194,020$2,830,410Liabilities and Stockholders' EquityAccounts payable (merchandise creditors)$ 606,860$ 640,400Bonds payable178,8700Common stock, $20 par210,00078,000Excess of paid-in capital over par505,000373,000Retained earnings1,693,2901,739,010Total liabilities and stockholders’ equity$3,194,020$2,830,410The noncurrent asset, noncurrent liability, and stockholders' equity accounts for 20Y2 are as follows:ACCOUNT LandACCOUNT NO.BalanceDateItemDebitCreditDebitCredit20Y2Jan. 1Balance318,670Apr. 20Realized $100,300 cash from sale107,860210,810ACCOUNT BuildingsACCOUNT NO.BalanceDateItemDebitCreditDebitCredit20Y2Jan. 1Balance600,560Apr. 20Acquired for cash373,820974,380ACCOUNT Accumulated Depreciation-BuildingsACCOUNT NO.BalanceDateItemDebitCreditDebitCredit20Y2Jan....
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 $918,000.00 $964,800.00 4 Accounts receivable (net) 828,900.00 761,940.00 5 Inventories 1,268,460.00 1,162,980.00 6 Prepaid expenses 29,340.00 35,100.00 7 Land 315,900.00 479,700.00 8 Buildings 1,462,500.00 900,900.00 9 Accumulated depreciation-buildings (408,600.00) (382,320.00) 10 Equipment 512,280.00 454,680.00 11 Accumulated depreciation-equipment (141,300.00) (158,760.00) 12 Total assets $4,785,480.00 $4,219,020.00 13 Liabilities and Stockholders’ Equity 14 Accounts payable (merchandise...