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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

  1. The loss on the cash sale of equipment was $7,125 (details in b).
  2. Sold equipment costing $52,875, with accumulated depreciation of $32,125, for $13,625 cash.
  3. Purchased equipment costing $98,375 by paying $34,000 cash and signing a long-term notes payable for the balance.
  4. Paid $46,925 cash to reduce the long-term notes payable.
  5. Issued 2,700 shares of common stock for $20 cash per share.
  6. 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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