Problem 5-6 Flounder Inc. had the following balance sheet at December 31, 2019. Cash Accounts receivable Investments Plant assets (net) FLOUNDER INC. BALANCE SHEET DECEMBER 31, 2019 $23,510 Accounts payable 24,710 Notes payable (long-term) 35,510 Common stock 81,000 Retained earnings 43,510 $33,510 44,510 103,510 26,710 $208,240 Land $208,240 During 2020, the following occurred. 1. Flounder Inc. sold part of its debt investment portfolio for $17,414. This transaction resulted in a gain of $5,814 for the firm. The company classifies these investments as available-for-sale. A tract of land was purchased for $16,510 cash. Long-term notes payable in the amount of $18,414 were retired before maturity by paying $18,414 cash. An additional $22,414 in common stock was issued at par. Dividends of $10,614 were declared and paid to stockholders. Net income for 2020 was $35,510 after allowing for depreciation of $13,414. Land was purchased through the issuance of $38,510 in bonds. At December 31, 2020, Cash was $40,510, Accounts Receivable was $45,110, and Accounts Payable remained at $33,510. 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).) FLOUNDER INC. Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income 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.) FLOUNDER 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