Preparation of a Statement of Cash Flows and a Statement of Financial Position Lansbury lnc, had the

Question:

Preparation of a Statement of Cash Flows and a Statement of Financial Position Lansbury lnc, had the statement of financial position shown below at December 31. 2009.

LANSBURY INC. STATEMENT OF FINANCIAL POSITION DECEMDER 31, 2009 $ 32,600 Share capital-ordinary Hetained earnings Long-t

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 non-trading equity.
2. A tract of land was purchased for $l8.000 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 ordinary shares were issued at par.
5. Dividends totalling $8,200 were declared and paid to shareholders.
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 a statement of financial position 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 flowratios.

Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Intermediate Accounting

ISBN: 978-0470873991

IFRS Edition

Authors: kieso, weygandt and warfield.

Question Posted: