Preparation of a Statement of Cash Flows and a Balance Sheet
Lansbury Inc. had the following balance sheet at December 31, 2016.
			Landsbury Inc.
			Balance Sheet
			December 31, 2016
			Assets				Liabilities and Stockholders’ Equity
			Cash	$20,000			Accounts payable		$30,000
			Accounts receivable	21,200			Notes payable (long-term)		41,000
			Investments	32,000			Common stock		100,000
			Plant assets (net)	81,000			Retained earnings		23,200
			Land	40,000					$194,200
				$194,200
During 2017, the following occurred.
	1.	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.
	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 2017 was $32,000 after allowing for depreciation of $11,000.
	7.	Land was purchased through the issuance of $35,000 in bonds.
	8.	At December 31, 2017, 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 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
	Noncash investing and financing activities
(b)	Prepare an unclassified balance sheet as it would appear at December 31, 2017.
	Calculation of balance sheet amounts:
		Investments:
		Plant assets:
		Land:
		Notes payable:
		Bonds payable:
		Common stock:
		Retained earnings:
	LANSBURY INC.
	Balance Sheet
	December 31, 2017
	Assets						Liabilities and Stockholders’ Equity
(c)	How might the statement of cash flows help the user of the financial statements?