B Problems 5 P5.7B LO 2,3) (Preparation of a Statement of Cash Flows and Balance Sheet) Ficus Inc. had the following balance sheet at December 31, 2019: FICUS INC. BALANCE SHEET DECEMBER 31, 2019 Cash Accounts receivable Investments Plant assets (net) Land $ 31,000 56,800 86,000 138,500 66,000 $378,300 Accounts payable Notes payable (long-term) Common stock Retained earnings $ 61,000 76,000 200,000 41,300 $378.300 During 2020, the following occurred: 1. Ficus liquidated its available-for-sale investment portfolio at a gain of $15,000. 2. A tract of land was purchased for $61,000 cash. 3. An additional $15,200 in common stock was issued at par. 4. Dividends totaling $41,000 were declared and paid to stockholders. 5. Net income for 2020 was $46,000, including $8,000 in depreciation expense. 6. Land was purchased through the issuance of $195,000 in additional notes payable. 7. At December 31, 2020, Cash was $68,000, Accounts Receivable was $84,000, and Accounts Payable was $72,000. Instructions (a) Prepare a statement of cash flows for the year 2020 for Ficus. (b) Prepare the balanee sheet as it would appear at December 31, 2020.- (c) Compute Ficus free cash flow and the currenteash-eebtcoverage ratio for 2020- (d) Use the analysis of Ficus to illustrate how information in the balance sheet and statement of cash flows helps the user -of the financial statements