The following information relates to Aires Corporation for 2010 and 2009:
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Aires Corporation
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Comparative Balance Sheets
December 31, 2010 and 2009
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Assets
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2010
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2009
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Change
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Cash
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$ 21,000
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$ 54,000
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($ 33,000)
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Accounts receivable (net)
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421,000
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480,000
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(59,000)
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Inventory
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310,000
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340,000
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(30,000)
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Prepaid expenses
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17,000
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15,000
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2,000
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Investments
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80,000
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80,000
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0
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Land
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350,000
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300,000
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50,000
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Building (net)
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680,000
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700,000
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(20,000)
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Equipment (net)
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520,000
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340,000
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180,000
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Total assets
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$2,399,000
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$2,309,000
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$ 90,000
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Liabilities
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Accounts payable
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$ 328,000
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$ 335,000
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($ 7,000)
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Accrued liabilities
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171,000
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170,000
|
1,000
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Income taxes payable
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22,000
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34,000
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(12,000)
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Bonds payable
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410,000
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700,000
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(290,000)
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Long-term note payable
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130,000
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0
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130,000
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Total liabilities
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$1,061,000
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$1,239,000
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($178,000)
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Stockholders' Equity
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Common stock
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$ 800,000
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$ 600,000
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$200,000
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Additional paid-in capital
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152,000
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152,000
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0
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Retained earnings
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386,000
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318,000
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68,000
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Total stockholders' equity
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$1,338,000
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$1,070,000
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$268,000
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Total liabilities and stockholders' equity
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$2,399,000
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$2,309,000
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$ 90,000
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Additional information:
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Net income for 2010 was $143,000.
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Issued a long-term note payable in exchange for computer equipment for $130,000.
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Purchased computer terminals for $90,000.
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Depreciation on equipment for 2010 was $40,000.
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Depreciation on building for 2010 was $20,000.
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Reacquired bonds payable at par for $290,000.
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Declared and paid dividends of $75,000.
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Issued 20,000 shares of common stock at par value of $10 per share.
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Paid $50,000 for land intended for a new plant site.
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Prepare a statement of cash flows using the indirect method. Include a schedule of noncash investing and financing transactions, if applicable.