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 Recevable 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 $ 75, 4ee 91,440 301, 156 1,380 469,376 148,500 (45,125) $ 564,751 $ 99,500 67,625 268,888 2,235 429,160 125, eee (54,5ee) $ 499,660 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 $ 79,141 15,180 85,241 56,500 141,741 $ 140, 175 9,400 149,575 65,750 215, 325 167,250 188,250 63,80 171, 760 $ 564,751 117,085 $ 499,660 $ 667,580 302, eee 365, 580 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 37,750 Other expenses 149,480 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 187,150 (22,125) 156, 225 48,050 $ 108, 175 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $22,125 (details in b). b. Sold equipment costing $97,875, with accumulated depreciation of $47,125, for $28,625 cash. c. Purchased equipment costing $113,375 by paying $64,000 cash and signing a long-term note payable for the balance. d. Borrowed $5,700 cash by signing a short-term note payable. e. Pald $58,625 cash to reduce the long-term notes payable. f. Issued 4,200 shares of common stock for $20 cash per share. g. Declared and pald cash dividends of $53,500. 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 Balance sheet-debit Cash S s 75,400 Accounts receivable Inventory Prepaid expenses Equipment 90,500 67,625 268,800 2,235 125,000 554,160 S S 75,400 S 54,500 140,175 9,400 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 65,750 167,250 0 117,085 554,180 S S 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 S 0