Lansbury Inc. had the balance sheet shown on the next page at December 31, 2011.

During 2012, the following occurred.1. Lansbury Inc. sold part of its investment portfolio for $15,000. This transaction resulted in a gain of $3,400 for the firm. The company classifies its investments as available-for-sale.2. A tract of land was purchased for $18,000 cash.3. Long-term notes payable in the amount of $16,000 were retired before maturity by paying $16,000 cash.4. An additional $20,000 in common stock was issued at par.5. Dividends of $8,200 were declared and paid to stockholders.6. Net income for 2012 was $32,000 after allowing for depreciation of $11,000.7. Land was purchased through the issuance of $30,000 in bonds.8. At December 31, 2012, Cash was $32,000, Accounts Receivable was $41,600, and Accounts Payable remained at $30,000.Instructions(a) Prepare a statement of cash flows for 2012.(b) Prepare an unclassified balance sheet as it would appear at December 31, 2012.(c) How might the statement of cash flows help the user of the financial statements? Compute two cash flowratios.

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LANSBURY INC. BALANCE SHEET DECEMBER 31, 2011 Accounts payable Notes payable (long-term) Common stock Retained earnings $ 20,000 $ 30,000 41,000 100,000 23.200 Cash Accounts receivable Investments Plant assets (net) Land 32,000 81,000 40,000 $194,200 $194,200