Problem 5-6 Pearl Inc. had the following balance sheet at December 31, 2016. ANCE SHE DECEMBER 31, 2016 $25,480 $35,480 Cash Accounts payable Notes payable (long-term) 46,480 Accounts receivable 26,680 Investments Common stock 37,480 105,480 Plant assets (net) Retained earnings 28,680 81,000 $216,120 45,480 Land $216,120 During 2017, the following occurred Pearl Inc. sold part of its investment portfolio for $19,291. This transaction resulted in a gain of $7,691 for the firm. The company classifies its investments as available-for-sale. 1. A tract of land was purchased for $18,480 cash. 2. Long-term notes payable in the amount of $20,291 were retired before maturity by paying $20,291 cash. 3. An additional $24,291 in common stock was issued at par. 4. Dividends of $12,491 were declared and paid to stockholders. 5. Net income for 2017 was $37,480 after allowing for depreciation of $15,291. 6. 7. Land was purchased through the issuance of $40,480 in bonds. At December 31, 2017, Cash was $42,480, Accounts Receivable was $47,080, and Accounts Payable remained at $35,480. 8. Prepare a statement of cash flows for 2017. (Show amounts that decrease cash flow PEARL 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, 2017. (List Assets in order of liquidity.) PEARL 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 :1 Cash debt coverage ratio :1