15 points ellook Print References 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, (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. Sales Cost of goods sold FORTEN COMPANY Income Statement For Current Year Ended December 31 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income Assets $ 637,500 296,000 341,500 $143,400 31,750 175,150 (16,125) 150,225 39,650 $ 110,575 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year 15 points 1 Income taxes expense Net income Assets 39,650 $ 110,575 Comparative Balance Sheets FORTEN COMPANY December 31 Current Year Prior Year P Book References Cash Accounts receivable Prepaid expenses Inventory 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 $ 66,400 82,380 292,156 $84,500 61,625 262,000 1,320 2,115 442,256 411,048 146,500 119,000 (42,125) (51,500) $546,631 $478,540 $ 64,141 $131,175 72,800 67,950 136,941 199,125 179,250 161,250 54,000 176,440 118,165 $ 546,631 $478,540 Check my work Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $16,125 (details in b). b. Sold equipment costing $79,875, with accumulated depreciation of $41,125, 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. 15 points 1 eflook Print Meferences Retained earnings Total liabilities and equity Additional Information on Current Year Transactions Help Save & Exit Submitt Check my work 176,440 $ 546,631 118,165 $478,548 a. The loss on the cash sale of equipment was $16,125 (defails in b). b. Sold equipment costing $79,875, with accumulated depreciation of $41,125, 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. Problem 12-3A (Algo) Indirect: Statement of cash flows LO A1, P2, P3 Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.) FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Required information 15 points eBook References Cash flows from operating activities Net income: FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Depreciation expense Loss on disposal of equipment Changes in current assets and current liabilities Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Decrease in accounts payable Depreciation expense Increase in accounts payable Increase in accounts receivable Increase in inventory Increase in prepaid expenses Cows Tidirananling acuines $ 0