Question

The following information is available for the Aarons Corporation:
Aarons Corporation Balance Sheets At December 31

2015
2014
Assets:



Cash $ 24,640
$ 23,040
Accounts receivable 32,180
29,400
Merchandise inventory 73,125
61,710
Long-term investments 55,900
56,400
Equipment 175,500
145,500
Accumulated depreciation (33,550 ) (31,200 )
Total assets $327,795
$284,850





Liabilities:



Accounts payable $ 65,000
$ 40,380
Income taxes payable 10,725
10,200
Bonds payable 48,750
66,000
Total liabilities $124,475
$116,580
Equity:



Common stock 117,000
96,000
Paid-in capital in excess of par 13,000
9,000
Retained earnings 73,320
63,270
Total equity $203,320
$168,270
Total liabilities and equity $327,795
$284,850






Aarons Corporation Income Statement For Year Ended December 31, 2013
Sales
$240,000
Cost of goods sold $80,900

Depreciation expense 29,400

Other operating expenses 48,000

Interest expense 2,000 (160,300 )
Other gains (losses):


Loss on sale of equipment
(8,400 )
Income before taxes
71,300
Income taxes expense
27,650
Net income
$ 43,650





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 2015 using the indirect method.

Answer

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