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