17 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 Port 3 of 3 625 Doints $ 667,500 302.000 365.500 FORTEN COMPTY Income Statement For current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) $149,400 Depreciation expense 37,750 Other ins (losses) Loss on sale of equipment Income before takes Income takes expen Net income Print 187,150 (22/125) 156,225 43.050 $ 100,175 Wences FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cast Accounts receivable Inventory Prepaid wees Total current wise La Accumulated depreciation Count Total Laste and will Accounts payable $ 75,400 91,440 301,394 100 469,376 140,500 125) 564751 $ 90,500 67,635 268,000 2. 420,160 125,000 (54,500) $70,141 $140.17 ME FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 75,400 91, 440 301,156 1,380 469,376 140, 500 (45,125) $ 564,751 $ 90,500 67,625 268,800 2,235 429,160 125,000 (54,500) $ 499,660 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, 55 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 70,141 71,600 141,741 $ 140,175 75,150 215, 325 167,250 188,250 63,000 171,760 $ 564,751 117,085 $ 499,660 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $22125 (details in t), b. Sold equipment costing $97875, with accumulated depreciation of $42125, 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. Pald $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 O Required information Part 3 of 3 Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Net income 6.25 points BOOK Print $ 0 References Cash flows from investing activities 0 Cash flows from financing activities 0 Not increase (decreaso) in cash Cash balance at December 31, prior year Cash balance at December 31, current year OO $ S 0 Mc Graw