The Following Information Is Available for the Aarons Corporation:
Aarons

question 120

Essay

The following information is available for the Aarons Corporation:
Aarons Corporation
Balance Sheets
At December 31
$\begin{array}{c}\text {Aarons Corporation}\\\text { Income Statement}\\\text {For Year Ended December 31,20X}\\\begin{array}{|l|}\hline \text {Sales}\\\hline \text {Cost of goods sold}\\\hline \text {Depreciation expense}\\\hline \text {Other operating expenses}\\\hline\\ \text {Interest expense}\\\hline \text {Other gains (losses):}\\\hline\\ \text {Loss on sale of equipment}\\\hline \text {Income before taxes}\\\hline \text {Income taxes expense}\\\hline\\ \text {Net incone}\\\hline \end{array}\begin{array}{l|}\hline\\\hline\$80,900\\\hline29,400\\\hline48,000\\\hline\\2,000\\\hline\\\hline\\\\\hline\\\hline\\\hline\\\\\hline\end{array}\begin{array}{l|}\hline\$240,000\\\hline\\\hline\\\hline\\\hline\\(160,300)\\\hline\\\hline\\(8,400)\\\hline71,300\\\hline27,650\\\hline\$\\43,650\\\hline\end{array}\end{array}$
Additional information:
(1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired.
(2) Old equipment with an original cost of $37,550 was sold for $2,100 cash.
(3) New equipment was purchased for $67,550 cash.
(4) Cash dividends of $33,600 were paid.
(5) Additional shares of stock were issued for cash.
Prepare a complete statement of cash flows for calendar-year 20X2 using the indirect method.

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Definitions:

Sophomores

Second-year students in a four-year degree program at a high school or university.

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis; it marks the threshold for significance.

Hypotheses

Proposed explanations or predictions that can be tested through research and experimentation.

T-statistic

A type of statistic used to estimate the population parameter based on a sample statistic.