2 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 $ 592,500 Cost of goods sold 287,000 Gross profit 305,500 Operating expenses (excluding depreciation) $ 134,400 Depreciation expense 22,750 157,150 Other gains (losses) Loss on sale of equipment (7,125) Income before taxes 141,225 Income taxes expense 27,050 Net income $ 114,175 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $ 52,900 $ 75,500 Accounts receivable 68,810 52,625 Inventory 278,656 253,800 Prepaid expenses 1,270 1,995 Total current assets 401,636 383,920 Equipment 155,500 110,000 Accumulated depreciationEquipment (37,625) (47,000) Total assets $ 519,511 $ 446,920 Liabilities and Equity Accounts payable $ 55,141 $ 117,675 Long term notes payable 74,600 57,150 Total liabilities 129,741 174,825 Equity Common stock, $5 par value 165,750 152,250 Paid in capital in excess of par, common stock 40,500 0 Retained earnings 183,520 119,845 Total liabilities and equity $ 519,511 $ 446,920 Additional Information on Current Year Transactions The loss on the cash sale of equipment was $7,125 (details in b ) Sold equipment costing $52,875, with accumulated depreciation of $32,125, for $13,625 cash Purchased equipment costing $98,375 by paying $34,000 cash and signing a long term notes payable for the balance Paid $46,925 cash to reduce the long term notes payable Issued 2,700 shares of common stock for $20 cash per share Declared and paid cash dividends of $50,500 Required 2A 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 ) 2B Prepare a complete statement of cash flows using a spreadsheet using the indirect method (Enter all amounts as positive values )

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2. 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

2. 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		$ 592,500
Cost of goods sold		287,000
Gross profit		305,500
Operating expenses (excluding depreciation)	$ 134,400
Depreciation expense	22,750	157,150
Other gains (losses)
Loss on sale of equipment		(7,125)
Income before taxes		141,225
Income taxes expense		27,050
Net income		$ 114,175

FORTEN COMPANY
Comparative Balance Sheets
December 31
	Current Year	Prior Year
Assets
Cash	$ 52,900	$ 75,500
Accounts receivable	68,810	52,625
Inventory	278,656	253,800
Prepaid expenses	1,270	1,995
Total current assets	401,636	383,920
Equipment	155,500	110,000
Accumulated depreciationEquipment	(37,625)	(47,000)
Total assets	$ 519,511	$ 446,920
Liabilities and Equity
Accounts payable	$ 55,141	$ 117,675
Long-term notes payable	74,600	57,150
Total liabilities	129,741	174,825
Equity
Common stock, $5 par value	165,750	152,250
Paid-in capital in excess of par, common stock	40,500	0
Retained earnings	183,520	119,845
Total liabilities and equity	$ 519,511	$ 446,920

Additional Information on Current Year Transactions

The loss on the cash sale of equipment was $7,125 (details in b).
Sold equipment costing $52,875, with accumulated depreciation of $32,125, for $13,625 cash.
Purchased equipment costing $98,375 by paying $34,000 cash and signing a long-term notes payable for the balance.
Paid $46,925 cash to reduce the long-term notes payable.
Issued 2,700 shares of common stock for $20 cash per share.
Declared and paid cash dividends of $50,500.

Required: 2A. 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.)

2B. Prepare a complete statement of cash flows using a spreadsheet using the indirect method. (Enter all amounts as positive values.)