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The comparative balance sheets and income statements for Stuart Company follow: Year 2 Year 1 Balance Sheets As of December 31 Assets Cash Accounts receivable

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The comparative balance sheets and income statements for Stuart Company follow: Year 2 Year 1 Balance Sheets As of December 31 Assets Cash Accounts receivable Inventory Equipment Accumulated depreciation-equipment Land Total assets Liabilities and equity Accounts payable (inventory) Long-term debt Common stock Retained earnings Total liabilities and equity $ 23,093 $ 2,697 1,692 1,015 6,283 5,890 19,950 42,840 (7,925) (17,129) 18,135 8,725 $ 61,228 $ 44,038 $ 2,599 2,887 22,800 32,942 $61,228 $ 4,199 6,599 10,000 23,240 $ 44,038 Income Statement For the Year Ended December 31, Year 2 Sales revenue $ 37, 120 Cost of goods sold (14,713) Gross margin 22,407 Depreciation expense (3,462) Operating income 18,945 Gain on sale of equipment 550 Loss on disposal of land (90) Net income $ 19,405 Additional Data 1. During Year 2, the company sold equipment for $18,084; it had originally cost $30,200. Accumulated depreciation on this equipment was $12,666 at the time of the sale. Also, the company purchased equipment for $7,310 cash. 2. The company sold land that had cost $3,390. This land was sold for $3,300, resulting in the recognition of a $90 loss. Also, common stock was issued in exchange for title to land that was valued at $12,800 at the time of exchange. 3. Pald dividends of $9.703. Required Prepare a statement of cash flows using the indirect method (Amounts to be deducted and cash outflows should be indicated by a minus sign.) STUART COMPANY Statement of Cash Flows For the Year Ended December 31, Year 2 Cash flows from operating activities: Less: Increase/Decrease in current assets and current liabilities: Plus: Noncash charges Cash flows from investing activities: Cash flows from financing activities: Cash flows from investing activities: Cash flows from financing activities: Ending cash balance Schedule of noncash investing and financing activities

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