Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the Equity

Common stock, $$5$ par value

Paid$-$in capital in excess of par, common stock

Retained earnings

Total liabilities and equity

Additional Information on Current Year Transactions

a$.$ The loss on the cash sale of equipment was $$5,125($details in $b).$

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 notes payable fo

balance.

d$.$ Paid $$46,125$ cash to reduce the long$-$term notes payable.

e$.$ Issued $2,500$ shares of common stock for $$20$ cash per share.

f$.$ Declared and paid cash dividends of $$50,100.$

Problem $16-5$AB $($Static$)$ Direct: Statement of cash flows LO P$5$

Required:

Prepare a complete statement of cash flows using the direct method.

Note: Amounts to be deducted should be indicated with a minus sign. er $16$ Assignment

i

$!$

Required information

Prepare a complete statement of cash flows using the direct method.

$2$ of $2$

Note: Amounts to be deducted should be indicated with a minus sign.

FORTEN COMPANY

$5$

Statement of Cash Flows

its

Skipped

References

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.

FORTEN COMPANY