00 6 Part 2 of 3 6.25 points Required Information [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, (1) all 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 31 Sales $667,500 eBook Cost of goods sold Gross profit 302,000 365,500 Operating expenses (excluding depreciation) Print Depreciation expense Other gains (losses) $ 149,400 37,750 187,150 Loss on sale of equipment (22,125) Income before taxes Income taxes expense References Net income 156,225 48,050 $108,175 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, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Additional Information on Current Year Transactions $ 75,400 91,440 301.156 $ 90,500 67,625 268,800 2,235 1,380 469,376 429,160 140,500 (45,125) $ 564,751 $ 70,141 71,600 141,741 188,250 125,000 (54,500) $ 499,660 $ 140,175 75,150 215,325 167,250 63,000 171,760 117,085 $ 564,751 $ 499,660 a. The loss on the cash sale of equipment was $22,125 (details in b). b. Sold equipment costing $97,875, with accumulated depreciation of $47,125, for $28,625 cash. c. Purchased equipment costing $113,375 by paying $64,000 cash and signing a long-term notes payable for the balance. d. Paid $52,925 cash to reduce the long-term notes payable. e. Issued 4,200 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $53,500. Required: Prepare a complete statement of cash flows using a spreadsheet using the indirect method. (Enter all amounts as positive values.) Balance sheet-debit Cash Accounts receivable Inventory Prepaid expenses Equipment Balance sheet-credit Accumulated depreciation-Equipment Accounts payable FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Long-term notes payable Common stock, $5 par value Paid-in capital in excess of par value, common stock Retained earnings Statement of cash flows Operating activities Investing activities Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term notes payable Analysis of Changes December 31, Prior Year December 31, Current Year Debit Credit $ 90,500 67,625 268,800 2,235 125,000 S 554.160 $ 54,500 140,175 75,150 167,250 117,085 $ 554,160 $ 75,400