Check my work 3 eBook Print References 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 TORTEN COPANY Income Statement For Current Year Ended December 31 Sales 5 $82,500 Cost of goods sold 285.000 Gross profit 297,500 Operating expenses (excluding depreciation) 5 132,400 Depreciation expense 20.750 153, 150 Other gains (losses) Loss on sale of equipment (5.125 Income before taxes 139.225 Tacon Taxes expense 24,250 Virt internet 5 114,075 PORTEN CON Comparative Balance Sheets December 31 Currest Year We war Me Prov 3.4 Nont> 3 Current Year Prior Year eBoo Print References FORTEN COMPANY Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accus, depreciation Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long ter notes payable Total Libilities Equity Common stock, 55 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $49.500 65,810 275,656 1 25e 392,516 157.500 36.625 $ 513,91 $ 73,500 50,625 251,300 1,875 377,500 105,000 (40.000) $439.des $ 53,141 10.000 03,141 65,000 125,141 5 114,675 5.000 120,675 41.750 169,425 150, 250 162.750 37.500 185.000 $513.391 120.125 $ 439.000 Additional Information on Current Year Transactions MC Pald-an capital in excess of par, common stock Retained earnings Total liabilities and equity 37,500 185,000 $ 513,391 @ 120,125 $ 439,800 Additional Information on Current Year Transactions . 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 1. Issued 2.500 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $50,100, Required information Required: Prepare a complete statement of cash flows using a spreadsheet using the Indirect method (Enter allomounts as positive values.) FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Analysis of Changes December 31, Prior Year Debit Credit December 31 Current Year $ $ 49 800 Balance sheel-debit Cash Accounts receivable Inventory Prepaid expenses Equipment 73,500 50,625 251 800 1,875 108,000 485 800 $ Balance sheet credit Accumulated depreciation--Equipment $ 45.000 Required information OOK Accounts payable Short-term notes payable Long-term notes payable Common stock, $5 par value Paid in capital in excess of par value.common stock Retained earnings 114,675 6,000 48.750 150 250 0 120,125 485,800 -ences 5 Statement of cash flows Operating activities Investing activities Required information Investing activities aces Financing activities Non cash Investing and financing activities Purchase of equipment financed by long-term note payable 10 Nav