ED P5-6 (Preparation of a Statement of Cash Flows and a Statement of Financial Position) Lansbury Inc. 7 had the statement of financial position shown below at December 31, 2014. Investments Plant assets (not) Land Accounts receivable Cash LANSBURY INC. STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2014 $ 32,000 Share capital -- ordinary 81.000 Retained earnings 40,000 Long-term notes payable 21,200 Accounts payable 20,000 $194,200 $100,000 23,200 41,000 30,000 $194,200 During 2015, 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 non-trading equity. 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 ordinary shares were issued at par. 5. Dividends totalling $8,200 were declared and paid to shareholders. 6. Net income for 2015 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, 2015, Cash was $32,0X10, Accounts Receivable was $41,600, and Accounts Payable remained at $30,000