Preparation of a statement of cash flows and a balance sheet

Microsoft Inc. had the following balance sheet at December 31, 2020

Landsbury Inc.

Balance Sheet

December 31,2019

Assets

Cash 20,000

Account Receivable 21,200

Investments 32,000

Plant Assets(net) 81,000

Land 40,000

= 194,200

Liabilities and stockholders Equity

Accounts payable 30,000

Notes payable (long term) 41,000

Common stock 100,000

Retained earnings 23,200

= 194,200

During 2021, the following occurred.

1) Landsbury 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 its 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

(a)Prepare a statement of cash flows for 2021.