1. How do the sale of its Craftsman brand, a loan from a hedge fund, and the sale of real estate impact Sears’ statement of cash flows?
Original blog posting (February 16, 2017)

2. Sears
In 2017:
Sears sold its Craftsman brand for $900 million to Black & Decker
Hedge fund affiliated with Sears’ CEO loaned Sears $500 million
Plans to sell about $1 billion of real estate assets

3. Question 1
What category of activity on the statement of cash flows would the sale of the Craftsman brand be considered?

4. Question 2
What category of activity on the statement of cash flows would the loan from the hedge fund be considered?

5. Question 3
What category of activity on the statement of cash flows would the sale of Sears real estate holdings be considered?

6. Question 4
How would Sears’ statement of cash flows be impacted by these activities? (Ignore any gains or losses on the transactions to answer this question.)

7. Question Recap
What category of activity on the statement of cash flows would the sale of the Craftsman brand be considered?
What category of activity on the statement of cash flows would the loan from the hedge fund be considered?
What category of activity on the statement of cash flows would the sale of Sears real estate holdings be considered?
How would Sears’ statement of cash flows be impacted by these activities? (Ignore any gains or losses on the transactions to answer this question.)

8. For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at Questions or comments? Contact Dr. Wendy Tietz at