Reference no: EM131785680
Question - Preparation of a Statement of Cash Flows and Balance Sheet
Aero Inc. had the following balance sheet at the end of operations for 2009.
AERO INC. Balance Sheet December 31, 2009
Cash $20,000 Accounts payable $21,200
Accounts receivable 21,200 Bonds 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.
Aero liquidated its available-for-sale investment portfolio at a loss of $5,000.
A tract of land was purchased for $38,000.
An additional $30,000 in common stock was issued at par.
Dividends totaling $10,000 were declared and paid to stockholders.
Net income for 2010 was $35,000, including $12,000 in depreciation expense.
Land was purchased through the issuance of $30,000in additional bonds.
At December 31, 2010, Cash was $70,200, Accounts Receivable was $42,000, and Accounts Payable was $40,000.
Prepare a statement of cash flows and a balance sheet for the year 2010 for Aero.