View the step-by-step solution to:

Thank you. --------------- Lansbury Inc. had the following balance Sheet at December 31, 2009. LANSBURY INC.

I need help...Thank you.
---------------
Lansbury Inc. had the following balance Sheet at December 31, 2009.
LANSBURY INC.
BALANCE SHEET
DECEMBER 31, 2009
Cash                          $ 20,000                  Accounts payable             $ 30,000
Accounts receivable  21,200                 Long-term notes payable    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 2010 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 totaling $8,200 were declared and paid to stockholders.
6. Net income for 2010 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, 2010, 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 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.

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question