The Following Information Is Available for the Aarons Corporation: AaronsAdditional Information: (1) There Was No Gain or Loss on Corporation

The Answer of The Following Information Is Available for the Aarons Corporation: AaronsAdditional Information: (1) There Was No Gain or Loss on Corporation

The Following Information Is Available for the Aarons Corporation: AaronsAdditional Information: (1) There Was No Gain or Loss on Corporation

The Answer of The Following Information Is Available for the Aarons Corporation: AaronsAdditional Information: (1) There Was No Gain or Loss on Corporation

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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
$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 $33,600 were paid. (5) Additional shares of stock were issued for cash. Prepare a complete statement of cash flows for calendar-year 20X2 using the indirect method.$ $\begin{array}{c}\text {Aarons Corporation}\\\text { Income Statement}\\\text {For Year Ended December 31,20X}\\\begin{array}{|l|}\hline \text {Sales}\\\hline \text {Cost of goods sold}\\\hline \text {Depreciation expense}\\\hline \text {Other operating expenses}\\\hline\\ \text {Interest expense}\\\hline \text {Other gains (losses):}\\\hline\\ \text {Loss on sale of equipment}\\\hline \text {Income before taxes}\\\hline \text {Income taxes expense}\\\hline\\ \text {Net incone}\\\hline \end{array}\begin{array}{l|}\hline\\\hline\$80,900\\\hline29,400\\\hline48,000\\\hline\\2,000\\\hline\\\hline\\\\\hline\\\hline\\\hline\\\\\hline\end{array}\begin{array}{l|}\hline\$240,000\\\hline\\\hline\\\hline\\\hline\\(160,300)\\\hline\\\hline\\(8,400)\\\hline71,300\\\hline27,650\\\hline\$\\43,650\\\hline\end{array}\end{array}$
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.

Definitions:

Expense Accounts

Accounts used to record the consumption of goods and services, or costs incurred in operating a business.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate period for a more accurate financial statement.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits or losses.

Prepaid Rent

An asset account that represents rent payments made in advance of the rental period.