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Operating Cash Flows Spreadsheet Method The following 2016 information is available for Stewart Company: Condensed Income Statement for 2016 Sales $9,000 Cost of goods sold
Operating Cash Flows Spreadsheet Method
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:
Based only on the information presented and using the direct method, prepare the cash flows from operating activities section of the 2016 statement of cash flows for Stewart using the spreadsheet method. Use a minus sign to indicate cash outflows, a decrease in cash or cash payments.
STEWART COMPANY | ||
Statement of Cash Flows (Partial) | ||
For Year Ended December 31, 2016 | ||
Operating Activities: | ||
Cash inflows: | ||
Collections from customers | $ | |
$ | ||
Cash outflows: | ||
$ | ||
$ |
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