CU palaLive Da Lalice sheels December 31 Current Year Prior Year $ 69,400 85,400 295, 156 1,340 451,296 144,500 (43, 125) $552,671 $ 86,500 63,625 264,800 2,155 417,080 121,000 (52,500) $485,580 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets 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 Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 66,141 13,900 80,041 58,500 138,541 $134, 175 8,600 142,775 61,750 204,525 163,250 182,250 57,000 174,880 $552,671 117,805 $485,580 $647,500 298,000 349,500 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 33,750 Other expenses 145,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 179, 150 (18,125) 152,225 42,450 $109,775 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $18,125 (details in b). ters 14, 15 and 16 i Saved Help Retained earnings Total liabilities and equity 174,880 $552,671 117,805 $485,580 $647,500 298,000 349,500 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 33,750 Other expenses 145,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 179, 150 (18,125) 152,225 42,450 $109,775 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $18,125 (details in b). b. Sold equipment costing $85,875, with accumulated depreciation of $43,125, for $24,625 cash. c. Purchased equipment costing $109,375 by paying $56,000 cash and signing a long-term note payable for the balance d. Borrowed $5,300 cash by signing a short-term note payable. e. Paid $56,625 cash to reduce the long-term notes payable. f. Issued 3,800 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $52,700. Required: Prepare a complete statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.) FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 7 Required: Prepare a complete statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a sign.) Part 2 of 2 30 FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities | Cash received from customers $ 625,725 (396,390) (144,585) (42.450) points $ 42,300 Cash flows from investing activities L 24,625 (31,375) Cash flows from financing activities 5,300 (56,625) 76.000 (52.700) Cash paid for dividends Not increaso (decreuso) in cash Cash balance at December 31, prior year Cash balance at December 31, current year (28,025) (17.100) 86.500 69 400
