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)
ââ828,900.00
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 Stockholdersâ Equity
14
Accounts payable (merchandise creditors)
$922,500.00
$958,320.00
15
Bonds payable
270,000.00
0.00
16
Common stock, $25 par
â317,000.00
117,000.00
17
Paid-in capital: Excess of issue price over parâcommon stock
758,000.00
558,000.00
18
Retained earnings
2,517,980.00
2,585,700.00
19
Total liabilities and stockholdersâ equity
$4,785,480.00
$4,219,020.00
The noncurrent asset, noncurrent liability, and stockholdersâequity accounts for 20Y2 are as follows:
ACCOUNT Land
ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 479,700 Apr. 20 Realized $151,200 cash from sale 163,800 315,900
ACCOUNT Buildings
ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 900,900 Apr. 20 Acquired for cash 561,600 1,462,500
ACCOUNT Accumulated DepreciationââBuildings
ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 382,320 Dec. 31 Depreciation for year 26,280 408,600
ACCOUNT Equipment
ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 454,680 26 Discarded, no salvage 46,800 407,880 Aug. 11 Purchased for cash 104,400 512,280
ACCOUNT Accumulated Depreciation ââEquipment
ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 158,760 26 Equipment discarded 46,800 111,960 Dec. 31 Depreciation for year 29,340 141,300
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 8,000 shares of common stock for $50 per share 200,000 317,000
ACCOUNT Paid-In Capital in Excess of ParââCommonStock
ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 558,000 Dec. 7 Issued 8,000 shares of common stock for $50 per share 200,000 758,000
ACCOUNT Retained Earnings
ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 20Y2 Jan. 1 Balance 2,585,700 Dec. 31 Net loss 35,320 2,550,380 31 Cash dividends 32,400 2,517,980
Prepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities. Refer to theLabels and Amount Descriptions list provided for the exact wordingof the answer choices for text entries. Be sure to complete theheading of the statement. Use the minus sign to indicate net loss,cash outflows, cash payments, decreases in cash, or any negativeadjustments.
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) | ââ828,900.00 | 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 Stockholdersâ Equity | ||
14 | Accounts payable (merchandise creditors) | $922,500.00 | $958,320.00 |
15 | Bonds payable | 270,000.00 | 0.00 |
16 | Common stock, $25 par | â317,000.00 | 117,000.00 |
17 | Paid-in capital: Excess of issue price over parâcommon stock | 758,000.00 | 558,000.00 |
18 | Retained earnings | 2,517,980.00 | 2,585,700.00 |
19 | Total liabilities and stockholdersâ equity | $4,785,480.00 | $4,219,020.00 |
The noncurrent asset, noncurrent liability, and stockholdersâequity accounts for 20Y2 are as follows:
ACCOUNT Land
ACCOUNT NO. | ||||||
Balance | ||||||
Date | Item | Debit | Credit | Debit | Credit | |
20Y2 | ||||||
Jan. | 1 | Balance | 479,700 | |||
Apr. | 20 | Realized $151,200 cash from sale | 163,800 | 315,900 |
ACCOUNT Buildings
ACCOUNT NO. | ||||||
Balance | ||||||
Date | Item | Debit | Credit | Debit | Credit | |
20Y2 | ||||||
Jan. | 1 | Balance | 900,900 | |||
Apr. | 20 | Acquired for cash | 561,600 | 1,462,500 |
ACCOUNT Accumulated DepreciationââBuildings
ACCOUNT NO. | ||||||
Balance | ||||||
Date | Item | Debit | Credit | Debit | Credit | |
20Y2 | ||||||
Jan. | 1 | Balance | 382,320 | |||
Dec. | 31 | Depreciation for year | 26,280 | 408,600 |
ACCOUNT Equipment
ACCOUNT NO. | ||||||
Balance | ||||||
Date | Item | Debit | Credit | Debit | Credit | |
20Y2 | ||||||
Jan. | 1 | Balance | 454,680 | |||
26 | Discarded, no salvage | 46,800 | 407,880 | |||
Aug. | 11 | Purchased for cash | 104,400 | 512,280 |
ACCOUNT Accumulated Depreciation ââEquipment
ACCOUNT NO. | ||||||
Balance | ||||||
Date | Item | Debit | Credit | Debit | Credit | |
20Y2 | ||||||
Jan. | 1 | Balance | 158,760 | |||
26 | Equipment discarded | 46,800 | 111,960 | |||
Dec. | 31 | Depreciation for year | 29,340 | 141,300 |
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 8,000 shares of common stock for $50 per share | 200,000 | 317,000 |
ACCOUNT Paid-In Capital in Excess of ParââCommonStock
ACCOUNT NO. | ||||||
Balance | ||||||
Date | Item | Debit | Credit | Debit | Credit | |
20Y2 | ||||||
Jan. | 1 | Balance | 558,000 | |||
Dec. | 7 | Issued 8,000 shares of common stock for $50 per share | 200,000 | 758,000 |
ACCOUNT Retained Earnings
ACCOUNT NO. | ||||||
Balance | ||||||
Date | Item | Debit | Credit | Debit | Credit | |
20Y2 | ||||||
Jan. | 1 | Balance | 2,585,700 | |||
Dec. | 31 | Net loss | 35,320 | 2,550,380 | ||
31 | Cash dividends | 32,400 | 2,517,980 |
Prepare a statement of cash flows, using the indirect method ofpresenting cash flows from operating activities. Refer to theLabels and Amount Descriptions list provided for the exact wordingof the answer choices for text entries. Be sure to complete theheading of the statement. Use the minus sign to indicate net loss,cash outflows, cash payments, decreases in cash, or any negativeadjustments.