Connect Homework Chapter 12 Statement of Cash Flows-The Rest i Saved 2 Use the following information for the Problems below The following information apples to the questions displayed below Forten Company's current year income statement. comparative balance sheets, and additional information follow For the year, () all sales are credit sales. (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) al 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 25 points FORTEN COMPANY Comparative Balance Sheets Decesber 31 eBook Curnent Year Prior Year Assets $ 52,900 $ 75,see 52,625 253,800 1,995 383,920 110,e0e (47,000) $446,929 Cash Accounts receivable Inventory 68,810 278,656 1,270 401,636 155,500 (32,625) Print Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Refere Total assets $$19,511 Liabilities and Equity Accounts payable Short-tern notes payable Total current liabilities Long-tere notes payable Total liabi1ities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 55,141 10,600 65.741 64,000 $117,675 6.400 124,075 Se.75e 129,741 174,825 152,250 165,750 40,5ee 183,520 $519.511 119,845 $446,920 FORTEN COMPANY Tncone Statement For Current Year Ended December 31 $592,500 282,000 Sales Cost of goods sold Gross profit Operating expenses 305,s00 Connect Homework Chapter 12 Statement of Cash Flows-The Rest i Saved 2 Total liabilities and equity $519,511 $446,920 FORTEN COMPANY Income Statement For Current Year Ended December 31 25 points Sales $592,se0 287,000 305,50e Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense elBook $ 22,750 134,400 157,150 Askc (7,125) 141,225 27,0s0 $114,175 Print Net income References Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $7125 (details in b. Sold equipment costing $52,875, with accumulated depreciation of $32,125, for $13,625 cash c. Purchased equipment costing $98,375 by paying $34,000 cash and signing a long-term note payable for the balance. d. Borrowed $4,200 cash by signing a short-term note payable e. Paid $51,125 cash to reduce the long-term notes payable. f. Issued 2,700 shares of common stock for $20 cash per share g. Declared and paid cash dividends of $50,500. Problem 12-3A Indirect: Statement of cash flows LO A1, P2, P3 Required: 1 Prepare a complete statement of cash flows usng the indirect method for the current year (Amounts to be deducted should be indicated with a minus sign.) FORTEN COMPANY 2 Required information Required: 1. Prepare a complete statement of cash flows using the indirect methodfor the current year (Amounts to be deducted should be- indicated with a minus sign.) 25 points FORTEN COMPANY Statement of Cash Flows eBook For Current Year Ended December 31 Cash Bows from operating activities Ask Adjustments to reconcile net income to net cash provided by operations Print References S Cash Sows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, crrent year
