Reference no: EM131987103

Question - Aero Inc. had the following balance sheet at December 31, 2011.

AERO INC. BALANCE SHEET DECEMBER 31, 2011

Cash $ 23,210 Accounts payable $ 33,210

Accounts receivable 24,410 Bonds payable 44,210

Investments 32,000 Common stock 103,210

Plant assets (net) 84,210 Retained earnings 26,410

Land 43,210 $207,040

$207,040

During 2012, the following occurred.

1. Aero liquidated its available-for-sale investment portfolio at a loss of $8,210.

2. A tract of land was purchased for $41,210.

3. An additional $30,000 in common stock was issued at par.

4. Dividends totaling $13,210 were declared and paid to stockholders.

5. Net income for 2012 was $38,210, including $15,210 in depreciation expense.

6. Land was purchased through the issuance of $33,210 in additional bonds.

7. At December 31, 2012, Cash was $73,410, Accounts Receivable was $45,210, and Accounts Payable was $43,210.

Required -

(a) Prepare a statement of cash flows for the year 2012 for Aero.