Problem 5-6 Cheyenne Inc. had the following balance sheet at December 31, 2019. Cash Accounts receivable Investments Plant assets (net) Land CHEYENNE INC. BALANCE SHEET DECEMBER 31, 2019 $20,990 Accounts payable 22,190 Notes payable (long-term) 32,990 Common stock 81,000 Retained earnings 40,990 $198,160 $30,990 41,990 100,990 24,190 $198,160 During 2020, the following occurred. 1. 2. 3. Cheyenne Inc. sold part of its debt investment portfolio for $15,071. This transaction resulted in a gain of $3,471 for the firm. The company classifies these investments as available-for-sale. A tract of land was purchased for $13,990 cash. Long-term notes payable in the amount of $16,071 were retired before maturity by paying $16,071 cash. An additional $20,071 in common stock was issued at par. Dividends of $8,271 were declared and paid to stockholders. Net income for 2020 was $32,990 after allowing for depreciation of $11,071. Land was purchased through the issuance of $35,990 in bonds. At December 31, 2020, Cash was $37,990, Accounts Receivable was $42,590, and Accounts Payable remained at $30,990. 5. 6. 7. 8. Prepare a statement of cash flows for 2020. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) CHEYENNE INC. Statement of Cash Flows Adjustments to reconcile net income to Land purchased through issuance of $ of bonds Prepare an unclassified balance sheet as it would appear at December 31, 2020. (List Assets in order of liquidity.) CHEYENNE INC. Balance Sheet Assets Liabilities and Stockholders' Equity Compute two cash flow ratios. (Round ratios to 2 decimal places, e.g. 0.62.) Current cash debt coverage ratio Cash debt coverage ratio