Problems 251 LANSBURY INC. BALANCE SHEET DECEMBER 31, 2016 Cash Accounts receivable Investments Plant assets (net) Land 20,000 Accounts payable 21,200 Notes payable (long-term) 32,000 Common stock 81,000 Retained earnings 40,000 $30,000 41,000 100,000 23200 $194.200 $194,200 During 2017, the following occurred. 1 Lansbury Inc. sold part of its debt investment portfolio for $15,000. This transaction resulted in a gain of S3400 for the firm. The company classifies these investments as available-for-sale. 2. A tract of land was purchased for $13,000 cash. 3. Long-term notes payable in the amount of S16,000 were retired before maturity by paying $16,000 cash. 4. An additional $20,000 in common stock was issued at par. 5. Dividends of $8,200 were declared and paid to stockholders. 6. Net income for 2017 was $32,000 after allowing for depreciation of $11,000. 7 Land was purchased through the issuance of $35,000 in bonds. 8. At December 31, 2017, Cash was $37,000, Accounts Receivable was $41,600, and Accounts Payable remained at $30,000. Instructions (a) Prepare a statement of cash flows for 2017 (b) Prepare an unclassified balance sheet as it would appear at December 31, 2017 c) How might the statement of cash flows help the user of the financial statements? Compute two cash flow ratios