Prepare a statement of cash flows using the indirect method

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Reference no: EM13573451

The following information relates to Aires Corporation for 2010 and 2009:

Aires Corporation
Comparative Balance Sheets December 31, 2010 and 2009

Assets	2010	2009	Change
Cash	$ 21,000	$ 54,000	($ 33,000)
Accounts receivable (net)	421,000	480,000	(59,000)
Inventory	310,000	340,000	(30,000)
Prepaid expenses	17,000	15,000	2,000
Investments	80,000	80,000	0
Land	350,000	300,000	50,000
Building (net)	680,000	700,000	(20,000)
Equipment (net)	520,000	340,000	180,000
Total assets	$2,399,000	$2,309,000	$ 90,000
Liabilities
Accounts payable	$ 328,000	$ 335,000	($ 7,000)
Accrued liabilities	171,000	170,000	1,000
Income taxes payable	22,000	34,000	(12,000)
Bonds payable	410,000	700,000	(290,000)
Long-term note payable	130,000	0	130,000
Total liabilities	$1,061,000	$1,239,000	($178,000)

Stockholders' Equity
Common stock	$ 800,000	$ 600,000	$200,000
Additional paid-in capital	152,000	152,000	0
Retained earnings	386,000	318,000	68,000
Total stockholders' equity	$1,338,000	$1,070,000	$268,000
Total liabilities and stockholders' equity	$2,399,000	$2,309,000	$ 90,000

Additional information:

	Net income for 2010 was $143,000.
	Issued a long-term note payable in exchange for computer equipment for $130,000.
	Purchased computer terminals for $90,000.
	Depreciation on equipment for 2010 was $40,000.
	Depreciation on building for 2010 was $20,000.
	Reacquired bonds payable at par for $290,000.
	Declared and paid dividends of $75,000.
	Issued 20,000 shares of common stock at par value of $10 per share.
	Paid $50,000 for land intended for a new plant site.

Prepare a statement of cash flows using the indirect method. Include a schedule of noncash investing and financing transactions, if applicable.

Reference no: EM13573451

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