Lansbury Inc. had the balance sheet shown on the following page at December 31 2009.LANSBURY INC.BALANCE SHEETDECEMBER 31 2009Cash $ 20000 Accounts payable $ 30000Accounts receivable 21200 Long-term notes payable 41000Investments 32000 Common stock 100000Plant assets (net) 81000 Retained earnings 23200Land 40000 $194200$194200During 2010 the following occurred.1.
Lansbury Inc. sold part of its investment portfolio for $15000. This
transaction resulted in a gain of $3400 for the firm. The company
classifies its investments as available-for-sale.2. A tract of land was purchased for $18000 cash.3. Long-term notes payable in the amount of $16000 were retired before maturity by paying $16000 cash.4. An additional $20000 in common stock was issued at par.5. Dividends totaling $8200 were declared and paid to stockholders.6. Net income for 2010 was $32000 after allowing for depreciation of $11000.7. Land was purchased through the issuance of $30000 in bonds.8. At December 31 2010 Cash was $32000 Accounts Receivable was $41600 and Accounts Payable remained at $30000.Instructions(a) Prepare a statement of cash flows for 2010.(b) Prepare an unclassified balance sheet as it would appear at December 31 2010.(c) How might the statement of cash flows help the user of the financial statements? Compute two cash flow ratios.