Operating Cash Flows Spreadsheet Method

The following 2019 information is available for Stew Company:

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 2019 statement of cash flows for Stew using the spreadsheet method. Use a minus sign to indicate cash outflows, a decrease in cash or cash payments.

Condensed Income Statement for 2019 Sales 59,000 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 Cash Accounts receivable Inventory Land Equipment Less: Accumulated depreciation Total Assets Comparative Balance Sheets December 31, December 31, 2018 2019 $700 $1,130 450 310 350 400 300 500 1,600 1,800 (200) (150) $3,200 $3,990 Accounts payable Bonds payable (due 1/1/2018) Common stock, $10 par Retained earnings Total Liabilities and Shareholders' Equity 5600 1,000 900 700 $3,200 $750 1,000 1,400 840 $3,990 VETU ya uwiele cell UUUUW, ale STEWART COMPANY Statement of Cash Flows (Partial) For Year Ended December 31, 2019 Operating Activities: Cash inflows: Cash outflows