Date Problem The following information relates to A s Carpon for 2020 and 2017 Aires Cerpen Comparative Balance Sheets December 31, 2018 2019 5 21.000 Accounts receivable (net) 421.000 300,000 Prepaid expenses 17.00 15.000 Long Term Investments 20.000 400.000 300,000 hquipment 1.730.000 1.590,000 Accumulated depreciation equipment 500,000 Tot assets Tiabilities Accounts payable 53000 55.000 171.000 170.000 Accrued its 12.000 34.000 200.000 410.000 Income taxes payable Bonds payable Tong- im note payable Total abilities Stockholders' Equity S106 S1629 50.000 500.000 152000 52.000 36.000 38.000 Com Additional pidin capital Retained earnings Total stockholders' equity Total abilities and stockholders equity SIERO 2092.000 1.000.000 32.309.00 2 Aires Corporation Year Ended December 31, 2000 Sales 5638,700 2.000 $336,700 $70,000 19.000 138.000 SI98,700 Cost of merchandise sold Gross profit Operating expenses Depreciation expense Amortization expertise 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 0000 6,000 7.000 $205,700 62.700 S12000 Page 1 of 3 Additional information: a) Issued a long-term note payable in exchange for computer equipment for SI 30.000 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) D) Repayment of bonds payable at par for $290,000 8) Declared and paid dividends of $75,000. h) Issued 20,XXO shares of common stock at par value of $10 per share. 1) 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 The following information relates to Aires Corporation for 2000 and 2019 Aires Corporation Comparative Balance Sheets December 2020 2019 $ 21.000 SSL Accounts receivable (net) 421.000 +. 3102 140,000 Prepaid expenses 17.000 Long Term vestment 400.00 300,000 1.710 Equipment Accumulated depreciation equipment 1610 600DXOXO Total assets $2,399.000 52.10900 Liabilities S320xd 115.000 1700 Accounts payable Accrued liabilities Income taxes payable Bonds payable 22.000 40 34.000 700,000 Long-term fote payable $1,061 1239,000 Total liabilities Stockhors' Equity $ 200 $ 600.000 152.000 152.000 NANNA 218.000 Additional paid-in capital Retained earnings Tocal stockholders' equity Total liabilities and stockholders equity SI.3. 52.199.000 1,020,000 52.209 Aires Corporation Income Statement Year Ended December 31, 2020 5638,700 302.000 5336.700 S70000 10.000 58.000 138.000 S198,700 Cast of merchandise sold Gross profit Operating expenses Depreciation expense Amortization expense Other operating expenses Income from operation Other incomo expenses Gain on sale of equipment Loss on sale of investment Interest income Income before income tax Income tax Net income $3.000 (2000) 6.000 7000 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) D) Repayment of bonds payable at par for $290,000 8) 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
