The following 2013 information is available for Stewart Company:

Condensed Income Statement for 2013

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.
Required:
Making whatever additional assumptions that are necessary,
1. Prepare a spreadsheet to support a 2013 statement of cash flows for Stewart.
2. Prepare the statement of cash flows.

Transcribed Image Text:

Comparative Balance Sheets December 31, December 31, 2012 2013 Cash Accounts receivable Inventory Land $ 700 450 350 300 1,600 (200) $3,200 $1,130 310 400 500 1,800 (150) $3,990 quipment Less: Accumulated depreciatio Total Assets Accounts payable Bonds payable (due 1/1/2015) Common stock, $10 par Retained earnings Total Liabilities and Shareholders' Equity $ 600 1,000 900 700 $3,200 $ 750 1,000 1,400 840 $3,990