Problem 5-6 Sarasota Inc. had the following balance sheet at December 31, 2019. Cash Accounts receivable Investments Plant assets (net) Land SARASOTA INC. BALANCE SHEET DECEMBER 31, 2019 $21,840 Accounts payable 23,040 Notes payable (long-term) 33,840 Common stock 81,000 Retained earnings 41,840 $201,560 $31,840 42,840 101,840 25,040 $ 201,560 During 2020, the following occurred. 1. 2. 3. 4. 5. 6. 7. 8. Sarasota Inc. sold part of its debt investment portfolio for $15,331. This transaction resulted in a gain of $3,731 for the firm. The company classifies these investments as available-for-sale. A tract of land was purchased for $14,840 cash. Long-term notes payable in the amount of $16,331 were retired before maturity by paying $16,331 cash. An additional $20,331 in common stock was issued at par. Dividends of $8,531 were declared and paid to stockholders. Net income for 2020 was $33,840 after allowing for depreciation of $11,331. Land was purchased through the issuance of $36,840 in bonds. At December 31, 2020, Cash was $38,840, Accounts Receivable was $43,440, and Accounts Payable remained at $31,840. 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).) SARASOTA INC. Statement of Cash Flows Adjustments to reconcile net income to Land purchased through issuance of s of bonds Prepare an unclassified balance sheet as it would appear at December 31, 2020. (List Assets in order of liquidity.) SARASOTA INC. Balance Sheet Assets Liabilities and Stockholders' Equity SHOW LIST OF ACCOUNTS LINK TO TEXT Compute two cash flow ratios. (Round ratios to 2 decimal places, e.g. 0.62.) Current cash debt coverage ratio Cash debt coverage ratio Click if you would like to Show Work for this question: Open Show Work List of Accounts Problem 5-6 Accounts Payable Accounts Receivable Accrued Liabilities Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Advances to Employees Allowance for Doubtful Accounts Bonds Payable Bond Sinking Fund Buildings Cash Cash Surrender Value of Life Insurance Common Stock Construction in Process Copyrights Debt Investments Dividends Payable Discount on Bonds Payable Equipment Equity Investments Finished Goods Inventory Franchises Goodwill Income Tax Payable Income Tax Receivable Interest Payable Interest Receivable Inventory Investments in Common Stock Investments in Stocks and Bonds Land Land Held for Future Use Notes Payable Notes Receivable Noncontrolling Interest Paid-in Capital in Excess of Par - Common Stock Paid-in Capital in Excess of Par - Preferred Stock Patents Payroll Tax Expense Payroll Taxes Payable Pension Liability Pension Obligation Plant Assets Premium on Bonds Payable Preferred Stock Preferred Stock Investments Prepaid Advertising Prepaid Insurance Prepaid Expenses Prepaid Rent Raw Materials Receivables-Officers Rent Payable Restricted Cash Retained Earnings Salaries and Wages Payable Supplies Timberland Treasury Stock Trademarks Trading Securities Unearned Service Revenue Unearned Rent Revenue Unearned Subscriptions Revenue Withholding Taxes Payable Work-in-Process
