Question
Aero Inc. had the following balance sheet at December 31, 2013. AERO INC. BALANCE SHEET DECEMBER 31, 2013 Cash $ 24,170 Accounts payable $ 34,170
Aero Inc. had the following balance sheet at December 31, 2013. AERO INC. BALANCE SHEET DECEMBER 31, 2013 Cash $ 24,170 Accounts payable $ 34,170 Accounts receivable 25,370 Bonds payable 45,170 Investments 32,000 Common stock 104,170 Plant assets (net) 85,170 Retained earnings 27,370 Land 44,170 $210,880 $210,880 During 2014, the following occurred. 1. Aero liquidated its available-for-sale investment portfolio at a loss of $9,170. 2. A tract of land was purchased for $42,170. 3. An additional $30,000 in common stock was issued at par. 4. Dividends totaling $14,170 were declared and paid to stockholders. 5. Net income for 2014 was $39,170, including $16,170 in depreciation expense. 6. Land was purchased through the issuance of $34,170 in additional bonds. 7. At December 31, 2014, Cash was $74,370, Accounts Receivable was $46,170, and Accounts Payable was $44,170. Prepare a statement of cash flows and a balance sheet.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started