Problem 5­-6 Lansbury Inc. - statement of cash flows

Problem 5­-6 Lansbury Inc. - statement of cash flows

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

LANSBURY INC.

BALANCE SHEET

DECEMBER 31, 2013

Cash $21,180 Accounts payable $31,180

Accounts receivable 21,524 Notes payable (long ­term) 42,180

Investments 33,180 Common stock 101,180

Plant assets (net) 81,000 Retained earnings 23,524

Land 41,180

$198,064 $198,064

During 2014, the following occurred.

1. Lansbury Inc. sold part of its investment portfolio for $15,324. This transaction resulted in a gain of $3,724 for the firm. The company classifies its investments as available ­for ­sale.

2. A tract of land was purchased for $19,180 cash.

3. Long ­term notes payable in the amount of $16,324 were retired before maturity by paying $16,324 cash.

4. An additional $20,324 in common stock was issued at par.

5. Dividends of $8,524 were declared and paid to stockholders.

6. Net income for 2014 was $33,180 after allowing for depreciation of $11,324.

7. Land was purchased through the issuance of $31,180 in bonds.

8. At December 31, 2014, Cash was $32,324, Accounts Receivable was $42,780, and Accounts Payable remained at $31,180.

Prepare a statement of cash flows for 2014