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, and (4) all debits to Accounts Payable reflect cash payments for inventory $582500 285,000 297,500 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) $132,400 Depreciation expense 20,750 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 153, 159 15,125) 139,225 24,250 $114,975 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year $ 49,800 65,810 275,656 19250 392,516 157,500 (36,625) $513.4391 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 $ 53), 141 10,000 63), 147 65,000 128), 141 162) 750 37.500 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 49,800 65,810 275,656 1,250 392,516 157.500 (36,625) $513,391 $ 73,500 50,625 251,800 1,875 377,800 108,000 (46,000) $439,800 ipment e es $ 53, 141 10,000 63), 141 65,000 128, 141 $114,675 6,000 120,675 48,750 169,425 150,250 lue ss of par, common stock 162,750 37,500 185,000 $513,391 120, 125 $439,800 quity Current Year Transactions of equipment was $5,125 (details in b). 546,875, with accumulated depreciation sh. sting $96,375 by paying $30,000 cash note payable for the balance. y signing a short-term note payable. uce the long-term notes payable. mmon stock for $20 cash per share. dividends of $50,100. a. The loss on the cash sale of equipment was $5,125 (details in b). b. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash c. Purchased equipment costing $96,375 by paying $30,000 cash and signing a long term note payable for the balance. d. Borrowed $4,000 cash by signing a short-term note payable. e. Paid $50,125 cash to reduce the long-term notes payable. f. Issued 2,500 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $50,100. 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 C December 31, Prior Debit Year $ . Balance sheet debit Cash Accounts receivable Inventory Prepaid expenses Equipment 73,500 50,625 251.800 1,875 108,000 485,800 $ $ 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 Rotoine Dominne 46,000 114.675 6,000 48,750 150,250 0 126 125 3 of Drow Next > Required information $ 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 46,000 114,575 6,000 48,750 150,250 0 120,125 485,800 $ 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 $ rrent Year Ended December 31 Analysis of Changes December 31, Prior Debit Credit Year December 31, Current Year $ $ 49,800 73,500 50,625 251,800 1,875 108,000 485,800 $ $ 49.800 $ 46,000 114,675 6,000 48,750 150,250 -0 120,125 485,800 $ 0 $ 3 of 4
