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Financial Position) Luo Ltd. had the following statement of financial position at December 31, 2021 57401, 2, 3) Groupwork (Preparation of a Statement of Cash
Financial Position) Luo Ltd. had the following statement of financial position at December 31, 2021 57401, 2, 3) Groupwork (Preparation of a Statement of Cash Flows and Statement of (amounts in thousands) Luo Ltd. Statement of Financial Position December 31, 2021 32,000 Share capital-ordinary Retained earnings Bonds payable 21,200 Accounts payable 20,000 Investments Plant assets (net) Land Accounts receivable Cash 81,000 40,000 V100.000 23,200 41,000 30,000 194,200 194,200 During 2022, the following occurred. 1. Luo liquidated its non-trading equity investment portfolio at a loss of 85,000. 2. A tract of land was purchased for 38,000. 3. An additional 30,000 in ordinary shares were issued at par. 4. Dividends totaling $10,000 were declared and paid to shareholders. 5. Net income for 2022 was Y35,000, including Y12,000 in depreciation expense. 6. Land was purchased through the issuance of 30,000 in additional bonds. 7. At December 31, 2022, Cash was 170,200, Accounts Receivable was 42,000, and Accounts Payable was $40,000 Instructions a. Prepare a statement of cash flows for the year 2022 for Luo. b. Prepare the statement of financial position as it would appear at December 31, 2022. c. Compute Luo's free cash flow and the current cash debt coverage for 2022. d. Use the analysis of Luo to illustrate how information in the statement of financial position and Statement of cash flows helps the user of the financial statements. Financial Position) Luo Ltd. had the following statement of financial position at December 31, 2021 57401, 2, 3) Groupwork (Preparation of a Statement of Cash Flows and Statement of (amounts in thousands) Luo Ltd. Statement of Financial Position December 31, 2021 32,000 Share capital-ordinary Retained earnings Bonds payable 21,200 Accounts payable 20,000 Investments Plant assets (net) Land Accounts receivable Cash 81,000 40,000 V100.000 23,200 41,000 30,000 194,200 194,200 During 2022, the following occurred. 1. Luo liquidated its non-trading equity investment portfolio at a loss of 85,000. 2. A tract of land was purchased for 38,000. 3. An additional 30,000 in ordinary shares were issued at par. 4. Dividends totaling $10,000 were declared and paid to shareholders. 5. Net income for 2022 was Y35,000, including Y12,000 in depreciation expense. 6. Land was purchased through the issuance of 30,000 in additional bonds. 7. At December 31, 2022, Cash was 170,200, Accounts Receivable was 42,000, and Accounts Payable was $40,000 Instructions a. Prepare a statement of cash flows for the year 2022 for Luo. b. Prepare the statement of financial position as it would appear at December 31, 2022. c. Compute Luo's free cash flow and the current cash debt coverage for 2022. d. Use the analysis of Luo to illustrate how information in the statement of financial position and Statement of cash flows helps the user of the financial statements
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