FORTEN COMPANY Comparative Balance Sheets December 31
	Current Year						Prior Year
Assets
Cash		$	72,400					$	88,500
Accounts receivable			88,420						65,625
Inventory			298,156						266,800
Prepaid expenses			1,360						2,195
Total current assets			460,336						423,120
Equipment			142,500						123,000
Accum. depreciationEquipment			(44,125	)					(53,500	)
Total assets		$	558,711					$	492,620
Liabilities and Equity
Accounts payable		$	68,141					$	137,175
Short-term notes payable			14,500						9,000
Total current liabilities			82,641						146,175
Long-term notes payable			57,500						63,750
Total liabilities			140,141						209,925
Equity
Common stock, $5 par value			185,250						165,250
Paid-in capital in excess of par, common stock			60,000						0
Retained earnings			173,320						117,445
Total liabilities and equity		$	558,711					$	492,620

FORTEN COMPANY Income Statement For Current Year Ended December 31
Sales				$	657,500
Cost of goods sold					300,000
Gross profit					357,500
Operating expenses
Depreciation expense	$	35,750
Other expenses		147,400			183,150
Other gains (losses)
Loss on sale of equipment					(20,125	)
Income before taxes					154,225
Income taxes expense					45,250
Net income				$	108,975

Additional Information on Current Year Transactions

1. The loss on the cash sale of equipment was $20,125 (details in b).
2. Sold equipment costing $91,875, with accumulated depreciation of $45,125, for $26,625 cash.
3. Purchased equipment costing $111,375 by paying $60,000 cash and signing a long-term note payable for the balance.
4. Borrowed $5,500 cash by signing a short-term note payable.
5. Paid $57,625 cash to reduce the long-term notes payable.
6. Issued 4,000 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $53,100.

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
Balance sheetdebit
Cash	$88,500			$72,400
Accounts receivable	65,625
Inventory	266,800
Prepaid expenses	2,195
Equipment	123,000
	$546,120
Balance sheetcredit
Accumulated depreciationEquipment	$53,500
Accounts payable	137,175
Short-term notes payable	9,000
Long-term notes payable	63,750
Common stock, $5 par value	165,250
Paid-in capital in excess of par value, common stock	0
Retained earnings	117,445
	$546,120
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