Additional Information on Current Year Transactions

a. The loss on the cash sale of equipment was $5,125 (details in b).

b. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash.

c. Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term note payable for the balance.

d. Borrowed $4,000 cash by signing a short-term note payable.

e. Paid $50,125 cash to reduce the long-term notes payable.

f. Issued 2,500 shares of common stock for $20 cash per share.

g. Declared and paid cash dividends of $50,100.

Required: Prepare a complete statement of cash flows using the indirect method for the current year.

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, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $ 49,800 $ 73,500 Accounts receivable 65,810 50,625 251,80 Inventory 275,656 0 Prepaid expenses 1,250 1.875 377,80 Tolal current assets 392,516 0 Equipment 157,500 108,00 0 Accumulated depreciation-Equipment (36,625 ) (46,000 Total assets $ 513,391 439,80 0 Liabilities and Equity Accounts payable S 53,141 $ 114,675 Short-term notes payable 10,000 6.000 Total current liabilities 63,141 120,67 5 Long-term notes payable 65.000 48.750 169.42 Total liabilities 128,141 5 Equity 150.25 Common stock, $5 par value 162.750 0 Paid-in capital in excess of par, common 37,500 0 stock Retained earnings 185,000 120,12 5 439,80 Total liabilities and equity S 513,391 FORTEN COMPANY Income Statement For Current Year Ended December 31 582,50 Sales 0 285,00 Cost of goods sold 0 297,50 Gross profit $ 0 Operating expenses Depreciation expense Other expenses $ 20.750 132,40 153,15 0 0 Other gains (losses) Loss on sale of equipment Income before taxes (5.125) 139,22 5 24,250 $ 114,975 Income taxes expense Net income