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0 Required Information Use the following information for the Problems below. (Algo) The following information applies to the questions displayed below) Forten Company's current year

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0 Required Information Use the following information for the Problems below. (Algo) The following information applies to the questions displayed below) Forten Company's current year Income statement, comparative balance sheets, and additional information follow. For the year. (1all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, and (4) all debits to Accounts Payable reflect cash payments for inventory FORTEN COMPANY Income Statement For Current Year Ended December Sales 5. 63,500 Cost of goods sold 296,000 Gross profit 341, 500 Operating expenses (excluding depreciation) $ 143,400 Depreciation expense 1250 275,158 Other gains Closses) Lost on sale of equipment Income before taxes (10. 125 150,225 Income taxes expense 39,658 Net Income $110,5 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Common stock, 35 par value Daid-in capital in excess of par common stock Retained earnings total liabilities and equity $ 66, 408 82,380 292 156 1,320 442,256 146,500 (42 1125) $ $46,631 $ 84,500 61,625 262) Bee 2115 411040 119. eee (51 580) $ 478,548 $ 64,141 22 800 136,241 $ 131,125 67,958 199,125 161,25e 229258 $4,000 1761440 $546,691 118,165 3 478,50 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $16,125 (details in D). b. Sold equipment costing $79,875, with accumulated depreciation of $41125. for $22,625 cash. c. Purchased equipment costing $107.375 by paying $52,000 cash and signing a long-term notes payable for the balance d. Paid $50,525 cash to reduce the long-term notes payable, e. Issued 3,600 shares of common stock for $20 cash per share, f. Declared and paid cash dividends of $52,300, FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Changes in current assets and current liabilities Cash flows from investing activities Cash flows from financing activities Prev Net Increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year

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