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 $ 79. 56,65 $ 58,900 74,83 284,656 1,270 419,656 151,500 (39,625 S531.5 2015 395.40 114, (69NO 0. 00 $ Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation Equipment Total assets Liabilities and Equity Accounts payable Short-ters notes payable Total current liabilities Long-ter notes payable Total liabilities Equity Common stock, 55 par value Paid-in capital in excess of par, c Retained earnings Total liabilities and equity $ 123,675 $59.141 11. 70,141 62 132,41 130,875 54,250 185,625 156.25 on stock 171.750 15. 10. Me $ 531,531 119.55 0.90 $ 5.612.500 321,500 FORTEN COMPANY Income statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense S 26,20 Other expenses Other gains (losses) Los on sale of w eet Income before taket Income taxes expense Net income 165, 15 $112.575 Additional Information on Current Year Transactions ..The loss on the cash sale of equipment was $11/25 (details in b. Sold equipment costing $64.875, with accumulated depreciation of $36.125, for $17,625 cash c. Purchased equipment costing $102.375 by paying $42.000 cash and signing a long term note payable for the balance d. Borrowed $4,600 cash by signing a short-term note payable e Paid 553.125 cash to reduce the long term notes payable issued 3.100 shares of common stock for $20 cash per share . Declared and paid cash dividends of $51.300 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was 511125 details in b. Sold equipment costing $64.875, with accumulated depreciation of $36,125, for $17,525 cash c. Purchased equipment costing $102.375 by paying $42.000 cash and signing a long-term note payable for the balance d. Borrowed $4,600 cash by signing a short-term note payable. e. Paid $53,125 cash to reduce the long-term notes payable. 1. Issued 3,100 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $51,300. 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 Adiustments to reconcile net income to net cash provided by operations Cash flows from investing activities Cash flows from financing activities Net increase Cash ban Cash balance crease in cash December 31. nor year December 31, curent year
