Question
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
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.
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