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 $ 49,800 65,810 275,656 1,250 392516 157500 (36 6252 $ 513,391 $ 73,500 50,625 251,800 1,875 377,800 108,000 ( 46.000) $ 439,800 25 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accun. 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, 55 par value Paid-in capital in excess of par. common stock Retained earnings Total liabilities and equity $53) 141 10.003 63, 141 65,000 128,141 $ 114,675 6,000 120,675 48,750 169,425 162,750 37,500 185.000 150 250 0 120.125 $ 439,800 S 513,391 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Grass profit Operating expenses S 582,500 285,000 297,500 5 582,500 285,000 297,500 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 20,750 Other expenses 132,480 Other goins (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 153, 150 (5,125) 139,225 24, 250 $ 114,975 Additional Information on Current Year Transactions nces o. The loss on the cash sale of equipment was $5,125 (details in ) b. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11.625 cash. C. Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term note payable for the balance. d. Borrowed $4,000 cash by signing a short-term note payable e. Paid $50,125 cash to reduce the long-term notes payable 1. Issued 2,500 shares of common stock for $20 cash per share 9. Declared and paid cash dividends of $50,100 Problem 16-3A Indirect: Statement of cash flows LO A1, P2, P3 Required: 1. Prepare a complete statement of cash flows using the Indirect method for the curreot year. (Amounts to be deducted should be Indicated with a minus sign.) FORTEN COMPANY wir 1 Required information ents FORTEN COMPANY Statestient of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Net income s 114,975 Adjustments to reconcie net income to nel cash provided by operations Depreciation expense 20,750 Loss on disposal of oquipment 5,125 eBook Print D References $ 140,850 Cash flows from investing activities Cash fours from financing activities $ 140.850 Net increase (decrease) in cash Cash bulance at December 31, prior year Cash balance at December 31, current year $ 140,850 Me Graw HII Question 1 - Chapt