Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $22,125 (details in b ). b. Sold equipment costing $97,875, with accumulated depreciation of $47,125, for $28,625 cash. c. Purchased equipment costing $113,375 by paying $64,000 cash and signing a long-term notes payable for the balance. d. Paid $52,925 cash to reduce the long-term notes payable. e. Issued 4,200 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $53,500. roblem 12-3A (Algo) Indirect: Statement of cash flows LO A1, P2, P3 equired: \begin{tabular}{|c|c|c|} \hline FORTENCOMPANYIncomeStatementForCurrentYearEndedDec & ber 31 & \\ \hline & & $667,500 \\ \hline Cost of goods sold & & 302,000 \\ \hline Gross profit & & 365,500 \\ \hline Operating expenses (excluding depreciation) & $149,400 & \\ \hline Depreciation expense & 37,750 & 187,150 \\ \hline Other gains (losses) & & \\ \hline Loss on sale of equipment & & (22,125) \\ \hline Income before taxes & & 156,225 \\ \hline Income taxes expense & & 48,050 \\ \hline Net income & & $108,175 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline FORTENCOMPANYComparativeBalanceSheetsDecember31 & Current Year & Prior Year \\ \hline \\ \hline Cash & $75,400 & $90,500 \\ \hline Accounts receivable & 91,440 & 67,625 \\ \hline Inventory & 301,156 & 268,800 \\ \hline Prepaid expenses & 1,380 & 2,235 \\ \hline Total current assets & 469,376 & 429,160 \\ \hline Equipment & 140,500 & 125,000 \\ \hline Accumulated depreciation-Equipment & (45,125) & (54,500) \\ \hline Total assets & $564,751 & $499,660 \\ \hline \multicolumn{3}{|l|}{ Liabilities and Equity } \\ \hline Accounts payable & $70,141 & $140,175 \\ \hline Long-term notes payable & 71,600 & 75,150 \\ \hline Total liabilities & 141,741 & 215,325 \\ \hline \multicolumn{3}{|l|}{ Equity } \\ \hline Common stock, \$5 par value & 188,250 & 167,250 \\ \hline \end{tabular} Answer is not complete. \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ FORTEN COMPANY } \\ \hline \multicolumn{4}{|c|}{ Statement of Cash Flows } \\ \hline \multicolumn{4}{|c|}{ For Current Year Ended December 31} \\ \hline \multicolumn{4}{|l|}{ Cash flows from operating activities } \\ \hline Net income & 2: & 108,175 & \\ \hline \multicolumn{4}{|c|}{Adjustmentstoreconcilenetincometonetcashprovidedbyoperations:} \\ \hline \multicolumn{4}{|l|}{ Income statement items not affecting cash } \\ \hline Depreciation expense & & 37,750 & \\ \hline Loss on disposal of equipment & & 22,125 & \\ \hline \multicolumn{4}{|c|}{ Changes in current assets and current liabilities } \\ \hline Increase in accounts receivable & & 75,400 & \\ \hline Decrease in prepaid expenses & & 301,156 & \\ \hline \multirow[t]{2}{*}{ Decrease in accounts payable } & & 70,141 & \\ \hline & & & $614,747 \\ \hline \multicolumn{4}{|l|}{ Cash flows from investing activities } \\ \hline Cash received from sale of equipment & & 22,125 & \\ \hline Cash paid for equipment & & 64,000 & \\ \hline \end{tabular}