Solved by verified expert :(Preparation of a Statement of Cash Flows and Balance Sheet)Aero Inc. had the following balance sheet at the end of operations for 2009.AERO INC.Balance SheetDecember 31, 2009Cash $20,000 Accounts payable $21,200Accounts receivable 21,200 Bonds payable 41,000Investments 32,000 Common stock 100,000Plant assets (net) 81,000 Retained earnings 23,200Land 40,000$194,200 $194,200During 2010 the following occurred.Aero liquidated its available-for-sale investment portfolio at a loss of $5,000.A tract of land was purchased for $38,000.An additional $30,000 in common stock was issued at par.Dividends totaling $10,000 were declared and paid to stockholders.Net income for 2010 was $35,000, including $12,000 in depreciation expense.Land was purchased through the issuance of $30,000in additional bonds.At December 31, 2010, Cash was $70,200, Accounts Receivable was $42,000, and Accounts Payable was $40,000.Prepare a statement of cash flows and a balance sheet for the year 2010 for Aero.
