1 P5-6 (LO 3,5,6) Preparation of a Statement of Cash Flows and a Balance Sheet 2 Lansbury Inc. had the following balance sheet at December 31, 2016. 3 4 5 6 Landsbury Inc. Balance Sheet December 31, 2016 7 8 Assets Cash Liabilitics and Stockholders' Equity $ 20,000 Accounts payable S 30,000 9 Accounts receivable 21,200 Notes payable (long-term) 41,000 10 Investments 32,000 Common stock 100,000 11 Plant assets (net) 81,000 Retained earnings 23,200 12 Land 40,000 $194.200 13 S 194.200 14 15 During 2017, the following occurred. 16 17 1. 18 Lansbury Inc. sold part of its debt 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 $13,000 cash. 3. Long-term notes payable in the amount of $16,000 were retired before maturity by paying $16,000 cash. 5. Dividends of $8,200 were declared and paid to stockholders. 19 20 21 22 23 4. An additional $20,000 in common stock was issued at par. 24 25 26 7. Land was purchased through the issuance of $35,000 in 27 28 19 6. Net income for 2017 was $32,000 after allowing for depreciation of $11,000. bonds. 8. At December 31, 2017, Cash was $37,000, Accounts Receivable was $41,600, and Accounts Payable remained at $30,000. 0 Instructions 1 (a) Prepare a statement of cash flows for 2017. LANSBURY INC. Statement of Cash Flows For the Year Ended December 31, 2017 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities