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 Current Year Prior Year $ 61, 900 77,850 287,656 1.290 428, 696 149,500 (40,625) S537,571 5 81,500 58,625 259,800 2,055 401, 980 116,000 (50,000) $467.980 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accur. 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 $ 61,141 12,400 73,541 61,000 134,541 $126, 675 7,600 134, 275 56.750 191,025 174, 750 49,500 178, 780 158.250 B 118,705 0527 571 CAR7 000 MAL 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 $ 61,141 12,400 73,541 61,000 134,541 $126, 675 7,600 134, 275 56, 750 191,025 174, 750 49,500 178, 780 158, 250 118,705 $537,571 $467,980 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $622,500 Cost of goods sold 293,000 Gross profit 329,500 Operating expenses Depreciation expense $ 28,750 Other expenses 140,400 169, 150 Other gains (losses) Loss on sale of equipment (13, 125) Income before taxes 147, 225 Income taxes expense 35,450 Net income S111, 775 Additional Information on Current Year 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 note payable for the balance. d. Borrowed $4,800 cash by signing a short-term note payable. e. Paid $54,125 cash to reduce the long-term notes payable. f. Issued 3,300 shares of common stock for $20 cash per share. 9. Declared and paid cash dividends of $51700. Problem 12-4AA Indirect: Cash flows spreadsheet LO P4 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 Year Debit Credit December 31, Current Year Balance sheet-debit Cash Accounts receivable $ $ 61,900 Inventory Prepaid expenses Equipment 81,500 58,625 259,800 2,055 116.000 $ 517 980 $ 61.900 $ Balance sheet-credit Accumulated depreciation-Equipment Accounts payable Short-term notes payable Long-term notes payable Common stock, $5 par value 50,000 126.675 7.600 56.750 158,250 -- THUN Common stock, $5 par value Paid in capital in excess of par value, common stock Retained earnings 158,250 0 118,705 517.980 $ $ 0 Statement of cash flows Operating activities Investing activities Financing activities Required information Investing activities Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term note payable $ 0 $ 0 Golden Corp'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, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. GOLDEN CORPORATION Comparative Balance Sheets December 31 Current Year Prior Year $ 178,000 104,000 622,000 904,000 372,700 (165, 000) $1, 111, 700 $ 122,400 85,000 540,000 747, 400 313,000 (111, 000) $ 949, 400 Assets Cash Accounts receivable Inventory Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity $ 115,000 42,000 157,000 $ 85,000 32,100 117. 100 608, 800 221,200 124, 700 $1,111,700 582,000 181,000 69,300 $ 949, 400 GOLDEN CORPORATION Income statement Far Current Year Ended December 31 Sales $1,862,000 Cost of goods sold 1,100,000 Gross profit 762,000 Operating expenses Depreciation expense $ 54,000 other expenses 508,000 562.000 Income before taxes 200,000 Income taxes expense 41,600 Net income $ 158, 400 Additional Information on Current Year Transactions a. Purchased equipment for $59,700 cash b. Issued 13,400 shares of common stock for $5 cash per share. c. Declared and paid $103,000 in cash dividends. Problem 12-7AA Indirect: Cash flows spreadsheet LO P4 Required: Prepare a complete statement of cash flows using a spreadsheet under the indirect method (Enter all amounts as positive values.) Required information GOLDEN CORPORATION Spreadsheet for Statement of Cash Flows For Current Yoar Ended December 31 Analysis of Changes December 31, Prior Year Debit Credit December 31, Current Year Balance sheet-debit balance accounts Cash $ 122,400 $ 178,000 Accounts receivable Inventory 85,000 540,000 313,000 1,060,400 Equipment $ $ 178,000 $ 111.000 Balance sheet credit balance accounts Accumulated depreciation Equipment Accounts payable Income taxes payable Common stock, $2 par value Paid-in capital in excess of par value, common stock 85.000 32 100 582,000 181.000 Required information Paid-in capital in excess of par value, common stock Retained earrings 181.000 69,300 1,060,400 $ $ 0 Statement of cash flows Operating activities Investing activities Financing activities Operating activities Investing activities Financing activities $ 0 $