P5.6 (LO 2, 3) Excel (Preparation of a Statement of Cash Flows and a Balance Sheet) Inc. had the following balance sheet at December 31, 2019. During 2020, 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 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 $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 2020 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 31,2020 , Cash was $37,000, Accounts Receivable was $41,600, and Accounts Payable remained at $30,000. Instructions a. Prepare a statement of cash flows for 2020. b. Prepare an unclassified balance sheet as it would appear at December 31, 2020 . c. How might the statement of cash flows help the user of the financial statements? Compute two cash flow ratios