Question

1. 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

2.