P5-7B (Pre aration of a Statement of Cash Flows and Balance Sheet] Ficus Inc. had the followin bal- P g D D ance sheet at December 31, 2013. FICUS INC. BALANCE SHEEI' DECEMBER 31, 2013 Cash $ 31,000 Accounts payable 5 61,000 Accounts receivable 56,800 Notes payable (longterm) Y6,000 Investments 86,000 Common stock 200,000 Plant assets (net) 138,500 Retained earnings 41,300 Land 66,000 $3?8,300 $378,300 During 2014, the following occurred. 1. Ficus liquidated its available-for-sale investment portfolio at a gain of $15,000. 2. A tract of land was purchased for $61,000 cash. 3. An additional $15,200 in common stock was issued at par. 4. Dividends totaling $41,000 were declared and paid to stockholders. 5. Net income for 2014 was $46,000, including $8,000 in depreciation expense. 6. Land was purchased through the issuance of $195,000 in additional notes payable. '7. At December 31, 2014, Cash was $68,000, Accounts Receivable was $84,000, and Accounts Payable was $72,000. Instructions (a) Prepare a statement of cash flows for the year 2014 for Ficus. 0)) Prepare the balance sheet as it would appear at December 31, 2014. (c) Compute Ficus' free cash flow and the current cash debt coverage ratio for 2014. (d) Use the analysis of Ficus to illustrate how information in the balance sheet and statement of cash flows helps the user of the financial statements