FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Net Income Adjustments to reconcile net income to not cash provided by operations: Income statement items not affecting cash Changes in current assets and current liabilities $ 0 Cash flows from Investing activities Cash flows from financing activities: S Net increase (decrease in cash Cash balance at December 31, prior year Cash balance at December 31, current year $ 587,500 286,000 301,500 FORTION COMPANY Incase Statement Por Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) $ 133,400 Depreciation expense 21,750 other gains (losses) Loon on sale of equipment Income before taxes Income taxes expense Net Income 155,150 (6,125) 140,225 25,650 $ 114,575 PORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 51,400 67,310 277,136 1,300 397,166 156,500 (37,125) $ 516,541 $ 74,500 51,625 252,800 2,025 380,950 109,000 (46,500) $443,450 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Latities and Equity Accounts payable Long-term notes payable Total liabilities Equity Common stock, 85 par value Pald-in capital in excess of par, common stock Betained earning Total liabilities and equity $ 54,141 74,100 128,941 5 116,175 35,950 172, 125 164,250 131,250 39,000 184,350 120,025 $ 516,541 $.443,450 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $6,125 (details in bj. b. Sold equipment costing $49,875, with accumulated depreciation of $31125, for $12,625 cash. c. Purchased equipment costing $97,375 by paying $32,000 cash and signing a long-term notes payable for the balance d. Pald $46,525 cash to reduce the long-term notes payable. e. Issued 2,600 shares of common stock for $20 cash per share. 1. Declared and paid cash dividends of $50,300