Statement of cash flows—indirect method - Whitman Co.
Account_tutorStatement of cash flows—indirect method
The comparative balance sheet of Whitman Co. at December 31, 2016 and 2015, is as follows:
$(169,600) |
| Dec. 31, 2016 | Dec. 31,2015 |
| 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 |
| Accumulated depreciation—buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . | (408,600) | (382,320) |
| 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 |
| Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2,517,980 | 2,585,700 |
| Total liabilities and stockholders’ equity. . . . . . . . . . . . . . . . . . . . . . . | $4,785,480 | $4,219,020 |
|
The noncurrent asset, noncurrent liability, and stockholders’ equity accounts for 2016 are as follows:
ACCOUNT Land ACCOUNT NO.
Date |
Item |
Debit |
Credit | Balance | ||
Debit | Credit | |||||
2016 Jan. Apr. |
1 20 |
Balance Realized $151,200 cash from sale |
|
163,800 |
479,700
315,900 |
|
ACCOUNT Buildings ACCOUNT NO.
Date |
Item |
Debit |
Credit | Balance | ||
Debit | Credit | |||||
2016 Jan. Apr. |
1 20 |
Balance Acquired for cash |
561,600 |
|
900,900 1,462,500 |
|
ACCOUNT Accumulated Depreciation––Buildings ACCOUNT NO.
Date |
Item |
Debit |
Credit | Balance | ||
Debit | Credit | |||||
2016 Jan. Dec. |
1 31 |
Balance Depreciation for year |
|
26,280 |
|
382,320 408,600 |
ACCOUNT Equipment ACCOUNT NO.
Date |
Item |
Debit |
Credit | Balance | ||
Debit | Credit | |||||
2016 |
1 |
Balance |
104,400 |
46,800 |
454,680 |
|
Jan. | ||||||
| 26 | Discarded, no salvage | 407,880 | |||
Aug. | 11 | Purchased for cash | 512,280 | |||
ACCOUNT Accumulated Depreciation––Equipment ACCOUNT NO.
Date |
Item |
Debit |
Credit | Balance | ||
Debit | Credit | |||||
2016 |
1 |
Balance |
46,800 |
29,340 |
|
158,760 |
Jan. | ||||||
| 26 | Equipment discarded | 111,960 | |||
Dec. | 31 | Depreciation for year | 141,300 | |||
ACCOUNT Bonds Payable ACCOUNT NO.
Date |
Item |
Debit |
Credit | Balance | ||
Debit | Credit | |||||
2016 May |
1 |
Issued 20-year bonds |
|
270,000 |
|
270,000 |
ACCOUNT Common Stock, $25 par ACCOUNT NO.
Date |
Item |
Debit |
Credit | Balance | ||
Debit | Credit | |||||
2016 Jan. Dec. |
1 7 |
Balance Issued 8,000 shares of common stock for $50 per share |
|
200,000 |
|
117,000
317,000 |
ACCOUNT Paid-In Capital in Excess of Par––Common Stock ACCOUNT NO.
Date |
Item |
Debit |
Credit | Balance | ||
Debit | Credit | |||||
2016 Jan. Dec. |
1 7 |
Balance Issued 8,000 shares of common stock for $50 per share |
|
200,000 |
|
558,000
758,000 |
ACCOUNT Retained Earnings ACCOUNT NO.
Date |
Item |
Debit |
Credit | Balance | ||
Debit | Credit | |||||
2016 |
1 |
Balance |
35,320 |
|
|
2,585,700 |
Jan. | ||||||
Dec. | 31 | Net loss | 2,550,380 | |||
31 | Cash dividends | 32,400 | 2,517,980 | |||
Instructions
Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.
10 years ago
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statement_of_cash_flows--indirect_method_-_whitman_co..docx
