Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I just need help with B,C,D please someone help me. P5-7 (LOI ,3,5,6) GROUPwORK (Preparation of a Statement of Cash Flows and Balance Sheet) Aero

image text in transcribed

I just need help with B,C,D please someone help me.

P5-7 (LOI ,3,5,6) GROUPwORK (Preparation of a Statement of Cash Flows and Balance Sheet) Aero Inc. had the follow- ing balance sheet at December 31, 2016. AERO INC. BALANCE SHEET DECEMBER 31, 2016 Cash Accounts receivable Investments Plant assets (net) Accounts payable 30,000 41,000 100,000 23,200 $194,200 20,000 21,200 Bonds payable 32,000 Common stock 81,000 40,000 Retained earnings $194,200 During 2017, the following occurred. 1. Aero liquidated its available-for-sale debt investment portfolio at a loss of $5,000. 2. A tract of land was purchased for $38,000. 3. An additional $30,000 in common stock was issued at par. 4. Dividends totaling $10,000 were declared and paid to stockholders. 5. Net income for 2017 was $35,000, including $12,000 in depreciation expense. 6. Land was purchased through the issuance of $30,000 in additional bonds. 7. At December 31, 2017, Cash was $70,200, Accounts Receivable was $42,000, and Accounts Payable was $40,000. Instructions (a) Prepare a statement of cash flows for the year 2017 for Aero. (b) Prepare the unclassified balance sheet as it would appear at December 31, 2017 (c) Compute Aero's free cash flow and current cash debt coverage for 2017. (d) Use the analysis of Aero to illustrate how information in the balance sheet and statement of cash flows helps the user of the financial statements

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

13th Edition

8120335643, 136126634, 978-0136126638

More Books

Students also viewed these Accounting questions

Question

1. What is the origin of the communication discipline?

Answered: 1 week ago

Question

2. What methods do communication scholars use to conduct research?

Answered: 1 week ago