Spreadsheet and Statement

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:

Making whatever additional assumptions that are necessary,

1. Prepare a spreadsheet to support a 2016 statement of cash flows for Stewart. If an amount is zero, enter "0".

Balances Balances Balances Change Worksheet Entries Debit Worksheet Entries Credit 12/31/2015 12/31/2016 Entries Debit Worksheet Entries Credit

Cash Noncash Accounts: Accounts receivable Inventory Land Equipment Totals Credits Accumulated depreciation Accounts payable Bonds pay. (due 1/1/2021) Common stock, $10 par Retained earnings Totals Cash Flow From Operating Activities Net income Add: Decrease in accounts receivable Add: Loss on sale of equipment Add: Depreciation expense Add: Increase in accounts payable Less: Increase in inventory Less: Gain on sale of land Cash Flows From Investing Activities Proceeds from sale of land Payment for purchase of land Proceeds from sale of equipment Payment for purchase of equipment Cash Flows From Financing Activities Proceeds from issuance of common stock Payment of dividends Net increase in cash Totals $ $

2. Prepare the statement of cash flows. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.

STEWART COMPANY
Statement of Cash Flows
For Year Ended December 31, 2016
Operating Activities:
Net income	$
Adjustment for noncash income items:
Add: Depreciation expense
Add: Loss on sale of equipment
Less: Gain on sale of land
Adjustments for cash flow effects from working capital items:
Decrease in accounts receivable
Increase in inventory
Increase in accounts payable
Net cash provided by operating activities		$
Investing Activities:
Proceeds from sale of land	$
Payment for purchase of land
Proceeds from sale of equipment
Payment for purchase of equipment
Net cash used for investing activities
Financing Activities:
Proceeds from issuance of common stock	$
Payment of dividends
Net cash used for financing activities
Net increase in cash		$
Cash, January 1, 2016
Cash, December 31, 2016		$

2. Prepare the statement of cash flows. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.

STEWART COMPANY
Statement of Cash Flows
For Year Ended December 31, 2016
Operating Activities:
Net income	$
Adjustment for noncash income items:
Add: Depreciation expense
Add: Loss on sale of equipment
Less: Gain on sale of land
Adjustments for cash flow effects from working capital items:
Decrease in accounts receivable
Increase in inventory
Increase in accounts payable
Net cash provided by operating activities		$
Investing Activities:
Proceeds from sale of land	$
Payment for purchase of land
Proceeds from sale of equipment
Payment for purchase of equipment
Net cash used for investing activities
Financing Activities:
Proceeds from issuance of common stock	$
Payment of dividends
Net cash used for financing activities
Net increase in cash		$
Cash, January 1, 2016
Cash, December 31, 2016