Luo Inc. had the following statement of financial position at December 31, 2014 (amounts in thousands).

100,000 23,200 41,000 30,000 194,200 LUO INC. STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2014 Investments 32,000 Share capitalordinary Plant assets (net) 81,000 Retained earnings Land 40,000 Bonds payable Accounts receivable 21,200 Accounts payable Cash 20,000 194,200 During 2015, the following occurred. 1.Luo liquidated its non-trading equity investment portfolio at a loss of 5,000. 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 2015 was 35,000, including 12,000 in depreciation expense. 6.Land was purchased through the issuance of 30,000 in additional bonds. 7.At December 31, 2015, Cash was 70,200, Accounts Receivable was 42,000, and Accounts Payable was 40,000. Instructions (a) Prepare a statement of cash flows for the year 2015 for Luo. (b) Prepare the statement of financial position as it would appear at December 31, 2015. (c) Compute Luo's free cash flow and the current cash debt coverage for 2015. (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