Problem 5-6 Pearl Inc. had the following balance sheet at December 31, 2019. Cash Accounts receivable Investments Plant assets (net) Land PEARL INC. BALANCE SHEET DECEMBER 31, 2019 $21,470 Accounts payable 22,670 Notes payable (long-term) 33,470 Common stock 81,000 Retained earnings 41,470 $200,080 $31,470 42,470 101,470 24,670 $200,080 During 2020, the following occurred. 1. 2. 3. 4. 5. Pearl Inc. sold part of its debt investment portfolio for $15,463. This transaction resulted in a gain of $3,863 for the firm. The company classifies these investments as available-for-sale. A tract of land was purchased for $14,470 cash. Long-term notes payable in the amount of $16,463 were retired before maturity by paying $16,463 cash. An additional $20,463 in common stock was issued at par. Dividends of $8,663 were declared and paid to stockholders. Net income for 2020 was $33,470 after allowing for depreciation of $11,463. Land was purchased through the issuance of $36,470 in bonds. At December 31, 2020, Cash was $38,470, Accounts Receivable was $43,070, and Accounts Payable remained at $31,470. 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).) PEARL INC. Statement of Cash Flows Adjustments to reconcile net income to CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION 4 BACK NEXT Land purchased through issuance of $ of bonds Prepare an unciassieu Dalance sneel as it would appear at December 31, 2020. (LIST Assets in order or liquiarty.) PEARL INC. Balance Sheet Assets $1 Liabilities and Stockholders' Equity $ Policy. 2000-2020 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley & Sons, Inc. CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINTER VERSION A BACK NEXT $ 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 By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Question Attempts: 0 of 2 used SAVE FOR LATER SUBMIT ANSWER % Earn Maximum Points available only if you answer this question correctly in your first attempt