Search here for Tutorials
If the Data is different in your question, please send your questions to homeworksolutionsnow@gmail.com. The questions will be answered at the same price.

Lansbury Inc. had the balance sheet shown on the following page at December 31, 2013.

Lansbury Inc. had the balance sheet shown on the following page at December 31, 2013.
P5-6 (Preparation of a Statement of Cash Flows and a Balance Sheet) Lansbury Inc. had the balance sheet shown on the following page at December 31, 2013.
LANSBURY INC.
Balance Sheet
December 31, 2013
Cash
$20,000
Accounts Payable
$30,000
Accounts Receivable
21,200
Notes Payable (Long-term)
41,000
Investments
32,000
Common Stock
100,000
Plant Assets (Net)
81,000
Retained Earnings
23,200
Land
40,000
 
 
$194,200
$194,200
During 2014 the following occurred:
1. Lansbury Inc. sold part of its investment portfolio for $15,000 This transaction resulted in a gain of $3,400 for the firm. The company classifies its investments as available-for - sale.
2. A tract of land was purchased for $18,000 cash.
3. Long-term notes payable in the amount of $16,000 were retired before maturity by paying $16,000 cash.
4. An additional $20,000 in common stock was issued at par.
5. Dividends totalling $8,200 were declared and paid to stockholders.
6. Net income for 2014 was $32,000 after allowing for depreciation of $11,000
7. Land was purchased through the issuance of $30,000 in bonds.
8. At December 31, 2014, Cash was $32,000 Accounts Receivable was $41,600 and Accounts Payable remained at $30,000
 
Instructions
(a) Prepare a statement of cash flows for 2014.
(b) Prepare an unclassified balance sheet as it would appear at December 31, 2014.
(c) How might the statement of cash flows help the user of the financial statements? Compute two cash flow ratios.
 
TUTORIAL PREVIEW
(a) Prepare a statement of cash flows for 2014.
LANSBURY INC.
Statement of Cash Flows
For the Year Ended December 31, 2014
Cash flows from operating activities
Net income
$32,000
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation Expense
$11,000
Gain on sale of investments
-3,400
 
File name: P5-6 Lansbury Inc.xls File type: xls-template PRICE: $10