Aarons Corporation Balance Sheets At Decem ber 31 2015 2014 Cash Accounts receiv

ID: 2595236 • Letter: A

Question

Aarons Corporation Balance Sheets At Decem ber 31 2015 2014 Cash Accounts receivable $24.640 32,180 73,125 55,900 175,500 $23,040 29,400 Long-term investments Equipment Accumulated depreciation 6.400 145500 Total assets Liabilities Accounts payable Income taxes payable Bonds payable 565 $40,380 10,725 10,200 Total liabilities Equity: 124,475 $116,580 Common stock Paid-in capital in excess of par Retained earnings 96,000 9,000 Total equity Total liabilities and equiry Aarons Corporation Income Statement For Year Ended December 31, 2013 $240,000 Sales Cost of goods sold Depreciation expense Other operating expenses Interest expense Other gains (losses): Loss on sale of equipment ncome before taxes ncome taxes expense et income $80,900 29,400 48,000 (160,300) 71,300 Page 8 of 11

Explanation / Answer

Aarons Corporation

CASH FLOW STATEMENT FOR THE YEAR ENDED DECEMBER 31

CASH FLOW FROM OPERATING ACTIVITIES

Net Income

43,650.00

Adjustment For non cash items and working capital changes:

Loss on sale of equipment

8,400.00

Depreciation

29,400.00

Increase in Accounts receivable

-2,780.00

Increase in inventory

-11,415.00

Increase in Accounts payable

24,620.00

Increase in Income tax payable

525.00

NET CASH FROM OPERATING ACTIVITIES (A)

92,400.00

CASH FLOW FROM INVESTING ACTIVITIES

Sale of old equipment [37550 - (31200+29400-33550)] - 8400

2,100.00

Purchase of Equipment

-67,550.00

Sale of investment

500.00

NET CASH FROM INVESTING ACTIVITIES (B)

-64,950.00

CASH FLOW FROM FINANCING ACTIVITIES

Retirement of Bond

-17,250.00

Issue of new shares of common stock (21000+4000)

25,000.00

Payment of dividend

-33,600.00

NET CASH FROM FINANCING ACTIVITIES (C)

-25,850.00

NET CHANGES IN CASH AND CASH EQUIVALENTS (A+B+C)

1,600.00

ADD: OPENING CASH AND CASH EQUIVALENTS

23,040.00

CLOSING CASH AND CASH EQUIVALENTS

24,640.00