Date JUULIL Name Problem 1 The following information relates to Aires Corporation for 2020 and 2019 Aires Corporation Comparative Balance Sheets December 31, 2020 and 2019 Assets $ 21.000 $ Accounts receivable (net) 54,000 421,000 480.000 Inventory 310,000 340.000 Prepaid expenses Long Term Investments 17.000 15.000 70,000 80.000 Land 400,000 300.000 1.730.000 1.590.000 Equipment Accumulated depreciation equipment Patent (61000001 600,00 40.000 S Toulsets S2.199.000 $2.309.000 SOS 11 Liabilities Accounts payable Accrued isilities Income taxes payable 171.000 170,000 22.000 34.000 Bonds payable 410.000 200.000 30.00 Long-term note payable Tosal liabilities Stockholders' Equity $1.061.0X 1.200.000 Common stock S 800,000 000 152.000 Additional paid-in capital Retained camin M 318.00 $1,358.0 $1.070,000 Total stockholders' equity Total liabilities and stockholders' equity $2.19000 $2.009.000 Aires Corporation Income Statement Year Ended December 11, 2020 $638,700 302.000 $336,700 $70.000 10.000 138.000 S198,700 Sales Cost of merchandise sold Gross profit Operating expenses Depreciation expense Amortization expense Other operating expenses Income from operations Other income/expenses Gain on sale of equipment Loss on sale of investment Interest income Income before income tax Income tax Net Income 53.000 (2000) 6.000 7.000 S205,700 62.700 $143.000 Page 1 of 3 Student Name Date Additional information: a) Issued a long-term note payable in exchange for computer equipment for $130,000. b) Purchased computer equipment for $90,000. c) Sold investments costing $10,000 for $8,000 (Hint: Calculate gain or loss) d) Sold equipment costing $80,000 with accumulated depreciation of $60,000 for $23,000 (Hint: Calculate gain or loss) f) Repayment of bonds payable at par for $290,000. g) Declared and paid dividends of $75,000. h) Issued 20,000 shares of common stock at par value of $10 per share. i) Paid $100,000 for land intended for a new plant site. Required: a) Prepare a statement of cash flows using the indirect method. Include a schedule of noncash investing and financing transactions, if applicable. b) Calculate (Write final answer in space provided below. Show calculation). Ratio Answer Free Cash Flows