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, (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 Prior Year Current Year $ 63,400 79,360 289, 156 1,300 433,216 148,500 (41, 125) $540,591 $ 82,500 59,625 260,800 2,075 405,000 117,000 (50,500) $471,500 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 $ 62,141 12,700 74,841 60,500 135, 341 $128, 175 7,800 135,975 57,750 193,725 176, 250 51,000 178,000 $540,591 159, 250 0 118,525 $ 471,500 $627,500 294,000 333,500 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 29,750 Other expenses 141,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 171,150 (14,125) 148, 225 36,850 $111,375 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $14,125 (details in b) b. Sold equipment costing $73,975, with accumulated depreciation of $39,125, for $20,625 cash. c. Purchased equipment costing $105,375 by paying $49,000 cash and signing a long-term note payable for the balance. d. Borrowed 54,900 cash by signing a short term note payable. e. Paid $54,625 cash to reduce the long term notes payable. Issued 3,400 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $51,900. Required: 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 Adjustments to reconcile net income tonat cash provided by operations 0 Cash flows from investing activities 0 Cash flows from financing activities 0 0 Net increase (decrease in cash Cash balance at December 31, prior year Cash balance at December 31, current year 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 Changes December 31, Prior Debit Year Credit December 31, Current Year Balance sheet dat Cash 5 B2,500 $ 63,400 Accounts receivable 59,625 Inventory Prepaid expenses Equipment 280,000 2,075 $ 117,000 522,000 63,400 $ 50,500 12,175 7,800 Balance she credit Accumulated depreciation Equipment Accounts payable Short-term notas payable Long-term not payable Common stock, 35 par ve Paid-in capital in excess of par value, common stock Retained earnings 57.750 159,250 0 118,625 522,000 $ Statement of each flows Operating activities Investing acties Financing advies Non cash investing and financing activities Purchase of equipment financed by long-term note payable Required: Prepare a complete statement of cash flows using the direct method. (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 0 Cash flows from investing activities 0 Cash flows from financing activities 0 S 0 Net increase (decrease) in cash Cash balance at December 31. prior year Cash balance at December 31, current year S 0