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

1. Prepare a complete statement of cash flows using the Indirect method for the current year. (Amour Indicated with a minus sign) FORTEN COMPANY Satement of Cash Flows For Curent Year Ended December 31 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Depreciation expense Changes in current assets and current liabilities Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Decrease in accounts payable 0 Cash flores from investing activities Cash paid for equipment Cash received from sale of equipment Cash flows from financing activities: Cash borrowed on short-term note Cash paid on long-term notes Cash received from issuing stock Cash paid for dividends 0 $ Net increase (decrease) in cash Cash balance at December 01, prior year Cash balance at December 01, current year S 0 1. Prepare a complete statement of cash flows using the Indirect method for the current year. (Amour Indicated with a minus sign) FORTEN COMPANY Satement of Cash Flows For Curent Year Ended December 31 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Depreciation expense Changes in current assets and current liabilities Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Decrease in accounts payable 0 Cash flores from investing activities Cash paid for equipment Cash received from sale of equipment Cash flows from financing activities: Cash borrowed on short-term note Cash paid on long-term notes Cash received from issuing stock Cash paid for dividends 0 $ Net increase (decrease) in cash Cash balance at December 01, prior year Cash balance at December 01, current year S 0 1. Prepare a complete statement of cash flows using the Indirect method for the current year. (Amour Indicated with a minus sign) FORTEN COMPANY Satement of Cash Flows For Curent Year Ended December 31 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Depreciation expense Changes in current assets and current liabilities Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Decrease in accounts payable 0 Cash flores from investing activities Cash paid for equipment Cash received from sale of equipment Cash flows from financing activities: Cash borrowed on short-term note Cash paid on long-term notes Cash received from issuing stock Cash paid for dividends 0 $ Net increase (decrease) in cash Cash balance at December 01, prior year Cash balance at December 01, current year S 0 Additional Information on Current Year Transactions a The loss on the cash sale of equipment was $15,125 (detalls in 6). b. Sold equipment costing $76,875, with accumulated depreciation of $40125. for $21,625 cash. c Purchased equipment costing $106,375 by paying $50,000 cash and signing a long-term notes payable for the balance. d. Pald $50,125 cash to reduce the long-term notes payable. e Issued 3.500 shares of common stock for $20 cash per share. Declared and pald cash dividends of $52,100. 1. Prepare a complete statement of cash flows using the Indirect method for the current year. (Amour Indicated with a minus sign) FORTEN COMPANY Satement of Cash Flows For Curent Year Ended December 31 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Depreciation expense Changes in current assets and current liabilities Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Decrease in accounts payable 0 Cash flores from investing activities Cash paid for equipment Cash received from sale of equipment Cash flows from financing activities: Cash borrowed on short-term note Cash paid on long-term notes Cash received from issuing stock Cash paid for dividends 0 $ Net increase (decrease) in cash Cash balance at December 01, prior year Cash balance at December 01, current year S 0 1. Prepare a complete statement of cash flows using the Indirect method for the current year. (Amour Indicated with a minus sign) FORTEN COMPANY Satement of Cash Flows For Curent Year Ended December 31 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Depreciation expense Changes in current assets and current liabilities Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Decrease in accounts payable 0 Cash flores from investing activities Cash paid for equipment Cash received from sale of equipment Cash flows from financing activities: Cash borrowed on short-term note Cash paid on long-term notes Cash received from issuing stock Cash paid for dividends 0 $ Net increase (decrease) in cash Cash balance at December 01, prior year Cash balance at December 01, current year S 0 1. Prepare a complete statement of cash flows using the Indirect method for the current year. (Amour Indicated with a minus sign) FORTEN COMPANY Satement of Cash Flows For Curent Year Ended December 31 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Depreciation expense Changes in current assets and current liabilities Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Decrease in accounts payable 0 Cash flores from investing activities Cash paid for equipment Cash received from sale of equipment Cash flows from financing activities: Cash borrowed on short-term note Cash paid on long-term notes Cash received from issuing stock Cash paid for dividends 0 $ Net increase (decrease) in cash Cash balance at December 01, prior year Cash balance at December 01, current year S 0 Additional Information on Current Year Transactions a The loss on the cash sale of equipment was $15,125 (detalls in 6). b. Sold equipment costing $76,875, with accumulated depreciation of $40125. for $21,625 cash. c Purchased equipment costing $106,375 by paying $50,000 cash and signing a long-term notes payable for the balance. d. Pald $50,125 cash to reduce the long-term notes payable. e Issued 3.500 shares of common stock for $20 cash per share. Declared and pald cash dividends of $52,100