Current Year Prior Year $ 64,900 80, 870 290,656 1,310 437,736 147,500 (41,625) $543,611 $ 83,500 60,625 261,800 2,095 408,020 118,000 (51,000) $475,020 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 $ 63,141 13,000 76,141 60,000 136,141 $129,675 8,000 137,675 58,750 196,425 177,750 52,500 177,220 $543, 611 160,250 0 118,345 $475,020 $632,500 295,000 337,500 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 30,750 Other expenses 142,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 173,150 (15, 125) 149, 225 38,250 $110,975 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $15,125 (details in b). b. Sold equipment costing $76,875, with accumulated depreciation of $40,125, for $21,625 cash. c. Purchased equipment costing $106,375 by paying $50,000 cash and signing a long-term note payable for the balance. d. Borrowed $5,000 cash by signing a short-term note payable. e. Paid $55,125 cash to reduce the long-term notes payable. f. Issued 3,500 shares of common stock for $20 cash per share. q. Declared and paid cash dividends of $52,100. Required: Prepare a complete statement of cash flows using a spreadsheet using the indirect method. (Enter all amounts as positive values.) FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Analysis of Changes December 31, Prior Debit Credit Year December 31, Current Year $ 64,900 Balance sheet-debit Cash Accounts receivable Inventory Prepaid expenses Equipment 83,500 60,625 261,800 2,095 118,000 526,020 $ $ 64,900 Balance sheet-credit Accumulated depreciation Equipment 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 51,000 129,675 8,000 58,750 160,250 0 118,345 526,020 $ $ 0 Statement of cash flows Operating activities 0 Paid-in capital in excess of par value, common stock Retained earnings 118,345 526,020 $ 0 Statement of cash flows Operating activities Investing activities Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term note payable 0