1.EX. 21-11

Spreadsheet and Statement

The following 2016 information is available for Stewart Company:

Condensed Income Statement for 2016

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

Comparative Balance Sheets

December 31,

2015

December 31,

2016

Cash

$700

$1,130

Accounts receivable

450

310

Inventory

350

400

Land

300

500

Equipment

1,600

1,800

Less: Accumulated depreciation

(200)

(150)

Total Assets

$3,200

$3,990

Accounts payable

$600

$750

Bonds payable (due 1/1/2018)

1,000

1,000

Common stock, $10 par

900

1,400

Retained earnings

700

840

Total Liabilities and Shareholders' Equity

$3,200

$3,990

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.

Required:

Making whatever additional assumptions that are necessary,

spreadsheet to support a 2016 statement of cash flows for Stewart. If an amount is zero, enter "0".

STEWART COMPANY

Cash Flows Worksheet

For Year Ended December 31, 2016

Balances

12/31/2015

Balances

12/31/2016

Balances

Change

Worksheet

Entries

Debit

Worksheet

Entries

Credit

Debits

Cash

700

1130

430

430

Noncash Accounts:

Accounts receivable

450

310

140

140

Inventory

350

400

50

50

Land

300

500

200

330130

Equipment

1600

1800

200

600400

Totals

3400

4140

740

Credits

Accumulated depreciation

200

150

50

100

50

Accounts payable

600

750

150

150

Bonds pay. (due 1/1/2021)

1000

1000

0

Common stock, $10 par

900

1400

500

500

Retained earnings

700

840

140

?

1140

Totals

3400

4140

740

?

?

Cash Flow From Operating Activities

Net income

1140

Add: Decrease in accounts receivable

140

Add: Loss on sale of equipment

260

Add: Depreciation expense

50

Add: Increase in accounts payable

150

Less: Increase in inventory

50

Less: Gain on sale of land

400

Cash Flows From Investing Activities

530

Proceeds from sale of land

?

Payment for purchase of land

?

Proceeds from sale of equipment

?

Payment for purchase of equipment

?

Cash Flows From Financing Activities

?

Proceeds from issuance of common stock

500

Payment of dividends

?

Net increase in cash

?

?

Totals

$

$

Feedback

You should review the Comprehensive Example (Spreadsheet Method) in your text before you begin this exercise. This will provide both the necessary format for the spreadsheet and a detailed discussion of the various entries that are summarized below.

To complete the spreadsheet you should use the following steps:

1.Account for all the changes in the noncash accounts that occurred during the current period.

2.Reconstruct the journal entries that caused the changes in the noncash accounts directly on the spreadsheet, in terms of the implied effects on cash inflows and outflows for operating, investing, and financing activities.

3.Net income is adjusted on the spreadsheet to reconcile it to the net cash flow from operating activities.

4.Account for the changes in the current asset and current liability accounts.

5.Account for the changes in the noncurrent accounts. Review each noncurrent account and determine the entry responsible for its change.

2. Prepare the statement of cash flows. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.

STEWART COMPANY

Statement of Cash Flows

For Year Ended December 31, 2016

Operating Activities:

Net income

$

Adjustment for noncash income items:

Add: Depreciation expense

Add: Loss on sale of equipment

Less: Gain on sale of land

Adjustments for cash flow effects

from working capital items:

Decrease in accounts receivable

Increase in inventory

Increase in accounts payable

Net cash provided by operating activities

$

Investing Activities:

Proceeds from sale of land

$

Payment for purchase of land

Proceeds from sale of equipment

Payment for purchase of equipment

Net cash used for investing activities

Financing Activities:

Proceeds from issuance of common stock

$

Payment of dividends

Net cash used for financing activities

Net increase in cash

$

Cash, January 1, 2016

Cash, December 31, 2016

$

The blank spaces and question marks indicate what I cannot figure out.