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. (Amounts to be deducted should be indicated with a minus sign.)

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. (Amounts to be deducted should be indicated with a minus sign.)

PORTEN COMPANY Statement 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 3 Cash flows 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 s Net increase (decrease) in cash Cash balance at December 21, prior year Cash balance at December 31, current year S PORTEN COMPANY Statement 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 3 Cash flows 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 s Net increase (decrease) in cash Cash balance at December 21, prior year Cash balance at December 31, current year S PORTEN COMPANY Statement 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 3 Cash flows 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 s Net increase (decrease) in cash Cash balance at December 21, prior year Cash balance at December 31, current year S Required 1. Prepare a complete statement of cash flows using the Indirect method for the current year (Amounts to be deducted should be Indicated with a minus sign.) FORTEN COMPANY Statement of Cash Flows For Current 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 flowers from investing activities Cash paid for equipment Cash received from sale of equipment 0 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 10 S 10 Net increase (Oecrease in cash Cash balance at December 31. prior year Cash balance at December 31 current year $ 0 PORTEN COMPANY Statement 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 3 Cash flows 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 s Net increase (decrease) in cash Cash balance at December 21, prior year Cash balance at December 31, current year S PORTEN COMPANY Statement 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 3 Cash flows 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 s Net increase (decrease) in cash Cash balance at December 21, prior year Cash balance at December 31, current year S PORTEN COMPANY Statement 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 3 Cash flows 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 s Net increase (decrease) in cash Cash balance at December 21, prior year Cash balance at December 31, current year S Required 1. Prepare a complete statement of cash flows using the Indirect method for the current year (Amounts to be deducted should be Indicated with a minus sign.) FORTEN COMPANY Statement of Cash Flows For Current 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 flowers from investing activities Cash paid for equipment Cash received from sale of equipment 0 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 10 S 10 Net increase (Oecrease in cash Cash balance at December 31. prior year Cash balance at December 31 current year $ 0