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.

Required:
Making whatever additional assumptions that are necessary,
1. Prepare a spreadsheet to support a 2019 statement of cash flows for Stewart.
2. Prepare the statement of cash flows.

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