2 ! Check my work Part 1 of 2 10 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 eBook For Current Year Ended December 31 Sales $ 672,500 Print Cost of goods sold 303,000 References Gross profit Operating expenses (excluding depreciation) $ 150,400 Depreciation expense Other gains (losses) 369,500 38,750 189,150 Loss on sale of equipment Income before taxes (23,125) 157,225 Income taxes expense Net income 49,450 $ 107,775 Assets Cash Accounts receivable Inventory Prepaid expenses Total FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 76,900 92,950 302,656 1,390 177 000 $ 91,500 68,625 269,800 2,255 100 2 Part 1 of 2 10 points Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Total liabilities Long-term notes payable Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity eBook Additional Information on Current Year Transactions Print References 473,896 139,500 (45,625) 432,180 126,000 (55,000) $ 567,771 $ 503,180 $ 71,141 $ 141,675 71,400 142,541 76,350 218,025 189,750 168,250 64,500 0 170,980 116,905 $ 567,771 $ 503,180 a. The loss on the cash sale of equipment was $23,125 (details in b). b. Sold equipment costing $100,875, with accumulated depreciation of $48,125, for $29,625 cash. c. Purchased equipment costing $114,375 by paying $66,000 cash and signing a long-term notes payable for the balance. d. Paid $53,325 cash to reduce the long-term notes payable. e. Issued 4,300 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $53,700. Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year. Note: Amounts to be deducted should be indicated with a minus sign. Check my work 2 I. rituale a Complete Statement on Casil IIuWS USINIU the mumememmivu TON LE Cument vtal. ! Required information Check my work Part 1 of 2 FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 10 points Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash eBook Print Changes in current assets and current liabilities References Cash flows from investing activities Cash flows from financing activities: Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year