+1(805) 568 7317

question ing balance sheet at december 31 2016 preparation of a statement of cash fl 4278315


ing balance sheet at December 31, 2016 (Preparation of a Statement of Cash Flows and Balance Sheet) Aero Inc. had the follow- AERO INC. BALANCE SHEET DECEMBER 31, 2016 Accounts receivable Investments Plant assets (net) Land s 20,000 Accounts payable 30,000 41,000 100,000 23,200 21,200 Bonds payable 32,000 Common stock 81,000 Retained earnings 40,000 $194,200 During 2017, the following occurred. 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 (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 he financial statements


"Order a similar paper and get 15% discount on your first order with us
Use the following coupon

Order Now