3 Part 2 of 2 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. 4 points eBook Print FORTEN COMPANY Income Statement For Current Year Ended December 31 $ Sales 682,500 Cost of goods sold 305,000 Gross profit 377,500 Operating expenses (excluding depreciation) 152,400 Depreciation expense 40,750 193, 150 Other gains (losses) Loss on sale of equipment (25, 125) Income before taxes 159, 225 Income taxes expense 52, 250 $ Net income 106,975 Reference FORTEN COMPANY Comparative Balance Sheets December 31 Current Prior Year Year Assets $ Cash $ 79,900 93,500 Accounts receivable 95,970 70,625 Inventory 305,656 271,800 Prepaid expenses 1,410 2,295 Total current assets 482,936 438, 220 Equipment 137,500 128,000 Accumulated depreciation-Equipment (46,625) (56,000) $ $ Total assets 573,81 510,228 Liabilities and Equity Accounts payable $ 73, 141 144,675 Long-term notes payable 71,000 78,750 Total liabilities 144,141 223, 425 Equity Common stock, $5 par value 192,750 170,250 Paid-in capital in excess of par, common stock 67,500 Retained earnings 169,420 116,545 $ $ Total liabilities and equity 573,81 510,228 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $25.125 (details in b). b. Sold equipment costing $106,875, with accumulated depreciation of $50,125, for $31,625 cash. c. Purchased equipment costing $116,375 by paying $70,000 cash and signing a long-term notes payable for the balance. d. Pald $54,125 cash to reduce the long-term notes payable. e issued 4,500 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $54,100. Required: Prepare a complete statement of cash flows using a spreadsheet using the indirect method. (Enter all amounts as positive values.) FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 December 31, Analysis of Changes December 31, Prior Year Debit Credit Current Year $ S 79,900 Balance sheet-debit Cash Accounts receivable Inventory Prepaid expenses Equipment 93,500 70,625 271,800 2,295 128,000 566,220 $ $ Balance sheet-credit Accumulated depreciation-Equipment Accounts payable cong-term notes payable Common stock, $5 par value Paid-in capital in excess of par value, common stock Retained earnings 56,000 144,675 78,750 170,250 0 116,545 566,220 $ Statement of cash flows Operating activities Investing activities Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term notes payable