Acc421 Intermediate Accounting: P5-7 Aero Inc. had the following balance sheet

Acc421 Intermediate Accounting

P5-7 (Preparation of a Statement of Cash Flows and Balance Sheet)
Aero Inc. had the following balance sheet at the end of operations for 2011.
AERO INC.
Balance Sheet
December 31, 2011
Cash 20,000 Accounts payable 30,000
Accounts receivable 21,200 Bonds payable 41,000
Trading securities 32,000 Capital stock 100,000
Plant assets (net) 81,000 Retained earnings 23,200
Land 40,000 194,200
194,200
During 2012 the following occurred.
1. Aero liquidated its 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 2012 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, 2012, Cash was $70,200, Accounts Receivable was $42,000, and Accounts Payable was $40,000.

Instructions:
1. Prepare a statement of cash flows for the year 2012 for Aero. (List multiple entries from the largest positive to the smallest positive amount followed by the most negative to the least negative amount, e.g. 15, 14, 10, -17, -5, -1. For negative numbers use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45).)
2. Complete the balance sheet as it would appear at December 31, 2012.
3. Compute Aero's free cash flow for 2012. (List multiple entries from the largest positive to the smallest positive amount followed by the most negative to the least negative amount, e.g. 15, 14, 10, -17, -5, -1. For negative numbers use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45).)
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