Forten Company's current year Income statement, comparative balance sheets, and additional Information follow. For the year, () 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 79,988 95,970 385,656 1,410 482,936 137,500 (46,625) 93, see 70,625 271,880 2,295 438, 220 128,00 (56,000) $ 510,22e $ 573,811 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, 55 par value Paid in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 73,141 16,eee 89,141 55,000 144. 141 $ 144,675 10, eee 154,675 223,425 170.250 192,750 67,500 169,420 $ 573,511 116,545 $ 510,220 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $ 682,500 305,000 377,500 Cost of goods sold Gross profit Operating expenses Depreciation expense other expenses Other gains (losses LOSS on sale of equipment Income before Income taxes expense 19240 a 192,150 Rencome Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $25,125 (details in b. Sold equipment costing $106,875, with accumulated depreciation of $50,125, for $31,625 cash c. Purchased equipment costing $116,375 by paying $70,000 cash and signing a long-term note payable for the balance. d. Borrowed $6,000 cash by signing a short-term note payable. e. Pald $60.125 cash to reduce the long-term notes payable 1. Issued 4,500 shares of common stock for $20 cash per share g. Declared and paid cash dividends of $54,100. 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 from operating activities Adustments to reconcile net income to net cash rovided by operations / 113 / / Cash flows from investing activities Cash flows from financing activities Required information 1. Prepare a complete statement of cash flows using the Indirect method for the currenty Indicated with a minus slgn.) Yarns Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Cash flows from investing activities Cash flows from financing activities Net hochsen cash balance at December 31 Cash bande at December 31 ou
