$637,500 296,000 341,500 FORTEN COMPANY Income Statement Tor Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 31,750 Other expenses 143,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net Income 175,150 (16,125) 150,225 39,650 $110,575 Problem 12-5AB Direct: Statement of cash flows LO P1, P3, P5 Additional Information on Year 2017 Transactions a. The loss on the cash sale of equipment was $16,125 (details in b). b. Sold equipment costing $79,875, with accumulated depreciation of $41,125, for $22,625 cash. c. Purchased equipment costing $107,375 by paying $52,000 cash and signing a long-term note payable for the balance. d. Borrowed $5,100 cash by signing a short-term note payable. e. Paid $55.625 cash to reduce the long-term notes payable. f. Issued 3.600 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $52.300. Dennende Required: Prepare a complete statement of cash flows; report its operating activities according to the direct method. (Amounts to be deducted should be indicated with a minus sign.) FORTEN COMPANY Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities $ 0 Cash flows from investing activities 0 Cashflows from financing activities 0 $ 0 Nel increase (decrease in cash Cash balance at beginning of year Cash balance at end of year $ 0