Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Vance and are initially debited to Prepaid Expenses. FORTEN COMPANY Comparative Balance Sheets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total liabilities: Equity December 31 Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $652,500 Cost of goods sold 299,000 Gross profit 353,500 Operating expenses. Depreciation expense. $ 34,750 Other expenses 146,400 181,150 Other gains (losses) Loss on sale of equipment (19,125) Income before taxes Income taxes expense Net income 153,225 43,850 $109,375 Current Year $ 70,900 86,910 Prior Year $87,500 64,625 296,656 265,800 1,350 2,175 455,816 420,100 143,500 122,000 (43,625) (53,000) $555,691 $489,100 $ 67,141 $135,675 14,200 8,800 81,341 144,475 58,000 62,750 139,341 207,225 183,750 164,250 58,500 174,100 0 117,625 $555,691 $489,100 Ventory, and (5) Other Saved Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $19,125 (details in b). b. Sold equipment costing $88,875, with accumulated depreciation of $44,125, for $25,625 cash. c. Purchased equipment costing $110,375 by paying $58,000 cash and signing a long-term note payable for the balance. d. Borrowed $5,400 cash by signing a short-term note payable. e. Paid $57,125 cash to reduce the long-term notes payable. f. Issued 3,900 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $52,900. Required: 1. 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.) FORTEN COMPANY Statement of Cash Flows: For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Cash flows from investing activities Help