Refer to the information for Stewart Company in E21-11.

Required:
Based only on the information presented and using the direct method, prepare the cash flows from operating activities section of the 2019 statement of cash flows for Stewart using the spreadsheet method.

E21-11

The following 2019 information is available for Stewart Company:
Condensed Income Statement for 2019
Sales ..............................................$ 9,000
Cost of goods sold ........................(6,000)
Other expenses .............................(2,000)
Loss on sale of equipment ..............(260)
Gain on sale of land ..........................400
Net income ....................................$ 1,140

Partial additional information:
• The equipment that was sold for cash had cost $400 and had a book value of $300.
• Land that was sold brought a cash price of $530.
• Fifty shares of stock were issued at par.

Transcribed Image Text:

Comparative Balance Sheets December 31, 2018 December 31, 2019 $ 700 $1,130 310 Cash Accounts receivable Inventory Land 450 400 350 300 500 1,600 (200) $3,200 1,800 (150) $3,990 Equipment Less: Accumulated depreciation Total Assets Accounts payable Bonds payable (due 1/1/2018) Common stock, $10 par Retained earnings Total Liabilities and Shareholders' Equity $ 600 1,000 $ 750 1,000 1,400 900 700 840 $3,990 $3,200