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
Sale of land
Purchase equipment
Purchase land
Financing Activities
Sale of stock
Pd dividends
40
530
600
330
500
1000