Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all 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. FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 63, 400 79, 360 289, 156 1,300 433, 216 148,500 (41,125) $540,591 $ 82,500 59,625 260,800 2,075 405,000 117,000 (50, 500) $471, 500 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 $ 62,141 12,700 74,841 60,500 135, 341 $128, 175 7,800 135,975 57,750 193,725 176,250 51,000 178,000 $540,591 159, 250 0 118,525 $471, 500 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $627.500 Cost of goods sold 294,000 Gross profit 333,500 Operating expenses Depreciation expense $ 29,750 Other expenses 141,400 171,150 Other gains (losses) Loss on sale of equipment (14, 125) Income before taxes 110,225 Income taxes expense 36,850 Set income $111,375 Additional Information on Current Year Transactions of 3 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 Balance sheet debit Cash Ded $ $ 63,400 Accounts receivable Inventory Prepaid expenses Equipment 82,500 59,625 260,800 2,075 117,000 522,000 ok $ $ 63,400 $ nces Balance sheet-credit Accumulated depreciation Equipment Accounts payable Short-term notes payable Long term notes payable Common stock, 55 par value Paid-in capital in excess of par value, common stock Retained earnings 50,500 128, 175 7,800 57.750 159 250 0 118,525 522,000 $ S Statement of cash flows Operating activities Investing activities Required information 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 128,175 7,800 57.750 159,250 0 118,525 522.000 $ 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 S O $ 0 Check my won UT C. Puicidseu equipment Cusung D9,3/5 Dy paying $40,000 CdSidu Signung d long-te note payable to the balance d. Borrowed $4,900 cash by signing a short-term note payable. e. Paid $54,625 cash to reduce the long-term notes payable. f. Issued 3.400 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $51,900. 2 of 3 Problem 12-4AA Indirect: Cash flows spreadsheet LO P4 kipped Required: Prepare a complete statement of cash flows using a spreadsheet using the indirect method (Enter all amounts as positive values.) eBook FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Analys+ of Changes December 31. Prior Year Debit Credit Print December 31 Current Year eferences $ 63,400 Balance sheet-debit Cash Accounts receivable Inventory Prepaid expenses Equipment 82,500 59,625 260,800 2,075 117,000 522,000 $ $ 63,400 s 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 50,500 128,175 7,800 57,750 159,250 0