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RelayHealth-Horne WATCH: KSAT 12 Nev Sign In . DIRECTV Cosmetologist Exam 9 ook

ID: 2408205 • Letter: R

Question

RelayHealth-Horne WATCH: KSAT 12 Nev Sign In . DIRECTV Cosmetologist Exam 9 ook Calculator Print Item Instructions The comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets 3 Cash 4 Accounts receivable (net) 5 Inventories 6 Prepaid expenses 917,060.00 $964,640.00 761,370.00 ,269190.00 1,161,990.00 34,400.00 480,110.00 00,900.00 (408,380.00) (381,900.00) 454,790.00 (141,520.00) (159,060.00) $4,786,490.00 $4,217,240.00 828,490.00 30,160.00 316,470.00 1,463,160.00 Land Buildings 9 Accumulated depreciation-buildings 10 Equipment 11 Accumulated depreciation-equipment 12 Total assets 13 511,860.00 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) 5 Bonds payable 16 Common stock, $25 par 17 Paid-in capital: Excess of issue price over par-common stock 1s Retained earnings $922,800.00 $958,260.00 0.00 117,000.00 559,000.00 2.514490.002582980.00 270,000.00 327,000.00 752,200.00 Check My Work All work saved.

Explanation / Answer

WHITMAN CO. Statement of Cash Flows (Indirect Method) For the Year ended Dec 31, 20Y2 Cash Flow from opearating activities: Net Loss        (36,020.00) Adjustments to reconcile net loss to net cash flow from operating activies: Depreciation expense        56,430.00 Loss on sale of Land ($163,640 - $151,080)        12,560.00 Changes in current operating assets and liabilities: Increase in Accounts Receivable     (67,120.00) Increase in Inventory (107,200.00) Decrease in Prepaid Expenses          4,240.00 Decrease in Accounts Payable     (35,460.00)     (136,550.00) Net Cash Flow from operating activities     (172,570.00) Cash flow from Investing Activities Cash recd from Land sold     151,080.00 Cash Paid for Purchase of Equipment (104,560.00) Cash Paid for Purchase of Buildings (562,260.00) Net Cash Flow from Investing activities     (515,740.00) Cash Flow from Financing Activities Cash received from issuance of Bonds Payable     270,000.00 Cash received from issuance of Common Stock     403,200.00 Cash paid for Dividend     (32,470.00) Net Cash Flow from Financing Activities        640,730.00 Change in Cash        (47,580.00) Cash balance at the beginning of Year        964,640.00 Cash balance at the end of the Year        917,060.00