The following 2012 information is available for the Desreumaux Company:
Condensed Income Statement for 2012
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
Additional Info:
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.
Making whatever additional assumptions that are necessary,
Prepare a worksheet to support a statement of cash flows for the Stewart Company for 2012.
Comparative Balance Sheets
12/31/2011 / 12/31/2012
Cash / 700 / 1,130
Accounts receivable / 450 / 140 / 310
Inventory / 350 / 50 / 400
Land / 300 / 330 / 130 / 500
Equipment / 1,600 / 600 / 400 / 1,800
Less: Accumulated depreciation / -200 / 100 / 50 / -150
Total Assets / 3,200 / 3,990
Accounts payable / 600 / 150 / 750
Bonds payable (due 1/1/2012) / 1,000 / 1,000
Common stock, $10 par / 900 / 500 / 1,400
Retained earnings / 700 / 1000 / 1140 / 840
Total Liab & Equity / 3,200 / 3,990
Operating activities
Net income / 1140
Loss of sale / 260
Gain of sale of land / 400
Increase in AR / 150
Depre. Expense / 50
Increase in inventory / 50
Decrease in A/R / 140
Investing Activities
Sale of equipment / 40
Sale of land / 530
Purchase equipment / 600
Purchase land / 330
Financing Activities
Sale of stock / 500
Pd dividends / 1000