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 Recelvable 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. Additional Information on Current Yeer Transactions a. The loss on the cash sale of equipment was $13,125 (details in b ) b. Sold equipment costing $70.875, with accumulated depreciation of $38,125, for $19,625 cash c. Purchased equipment costing $104.375 by paying $46,000 cash and signing a long-term notes payable for the Additional Information on Current Yeor Transactions a. The loss on the cash sale of equipment was $13,125 (details in b) b. Sold equipment costing $70,875, with accumulated depreciation of $38,125, for $19,625 cash c. Purchased equipment costing $104,375 by paying $46,000 cash and signing a long-term notes payable for the balance. d. Paid $49,325 cash to reduce the long-term notes payable e. Issued 3,300 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $51,700 Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year: Note: Amounts to be deducted should be indicated with a minus sign. FORTEN COMPANY Statement of Cash Flows For Curent Yerar Ended December 31 Cash flows from operating activities \begin{tabular}{|l|l|l|} \hline Net income & $ & 111,775 \\ \hline \end{tabular} Adjustments to reconcile net income to net cash provided by operations Income statement items not affecting cash \begin{tabular}{|l|l|l|l|l|} \hline Depreciation expense & 111111 \\ \hline Loss on disposal of equipment & 52.375 \\ \hline \end{tabular} Changes in current assets and current liabilities \begin{tabular}{|l} \hline \\ \hline \\ \hline Cash flows from investing activities \\ \hline \end{tabular} Cash flows from financing activities: Golden Corporation'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) any change in income Taxes Payable reflects the accrual and cash payment of taxes Additional Information on Current Year Transoctions a. Purchased equipment for $66,500 cash b. Issued 13,800 shares of common stock for $5 cash per share. c. Declared and paid $107,000 in cash dividends. o. Purchased equipment for $66,500 cash. b. Issued 13,800 shares of common stock for $5 cash per share. c. Declared and paid $107,000 in cash dividends. Required: Prepare a complete statement of cash flows using the indirect method for the current year. Note: Amounts to be deducted should be indicated with a minus sign. Required: Prepare a complete statement of cash flows using the indirect method for the current year
