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May I have a tutor walk me through this process please? This is my first time ever doing cash flows (Preparation of a Statement of
May I have a tutor walk me through this process please? This is my first time ever doing cash flows
(Preparation of a Statement of Cash Flows and a Balance Sheet) (LO 3, 5, 6) Lansbury Inc had the following balance sheet at December 31, 2016. LANSBURY INC. Balance Sheet December 31, 2016 Cash Accounts receivable 21,200 Investments Plant assets (net) S1,000 Land s 20,000 Accounts payable 32,000 40,000 S 30,000 Notes payable (long-term) 41,000 Common stock 100,000 Retained eamings23,.200 S194,200 $194,200 During 2017, the following occurred. 1Lansbury Inc. sold part of its debe investment portfolio for S 15.000. This transaction resulted in a gain of $3,400 for the firm. The company classifies these 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 S16,000 were retired before maturity by 5Dividends of ss.200 wereda clared and paid to stockholders .7.Land was purchased through the issuance of 535,000 in bonds paying $16,000 cash. . 4.An additional $20,000 in common stock was issued at par 6.Net income for 2017 was $32,000 after allowing for depreciation of $11,000 8At December 31, 2017. Cash uas S37,000, Accounts Receivable was S41.600, and Accounts Payable remained st $30,000 Instructions Prepare a statement of cash flows for 2017. Prepare an unclassified balance sheet as it wowld appear at December 31, 2017 How might the statement of cash flows help the user of the financial statements? Compute two cash flow ratios
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