Give me correct answer with explanation.j Aero Inc. had the following balance sheet at December 31, 2024.Aero Inc.Balance SheetDecember 31, 2024Cash$20,000Accounts payable$30,000Accounts receivable21,200Bonds payable41,000Investments32,000Common stock100,000Plant assets (net)81,000Retained earnings23,200Land40,000$194,200$194,2001.2.During 2025, the following occurred.Aero liquidated its available-for-sale debt investment portfolio at a loss of $5,000.A tract of land was purchased for $38,000.3.An additional $30,000 in common stock was issued at par.4.Dividends totaling $10,000 were declared and paid to stockholders.5.Net income for 2025 was $35,000, including $12,000 in depreciation expense.6.Land was purchased through the issuance of $30,000 in additional bonds.7.At December 31, 2025, Cash was $70,200, Accounts Receivable was $42,000, and Accounts Payable was $40,000.(d) Illustrate how information in the balance sheet and statement of cash flows helps the user of the financial statements.

Financial statement:The financial statement is the statement or the record that is prepared by the…

Answered: (d) Illustrate how information in the…

(d) Illustrate how information in the balance sheet and statement of cash flows helps the user of the financial statements.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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