Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year....
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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, and (4) all debits to Accounts Payable reflect cash payments for inventory. FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $ 652,500 Cost of goods sold 299,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) 353,500 $ 146,400 34,750 181,150 Loss on sale of equipment Income before taxes Income taxes expense Net income Assets Cash Accounts receivable FORTEN COMPANY Comparative Balance Sheets December 31 Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable 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 (19,125) 153,225 43,850 $ 109,375 Current Year Prior Year $ 70,980 86,910 296,656 $ 87,500 64,625 265,800 1,350 2,175 455,816 420,100 143,500 (43,625) $ 555,691 $ 489,100 122,000 (53,000) $ 67,141 $ 135,675 72,200 139,341 183,750 58,500 71,550 207,225 164,250 B 174,100 117,625 $ 555,691 $ 489,100 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $19.125 (details in b). b. Sold equipment costing $88,875, with accumulated depreciation of $44,125, for $25,625 cash. c. Purchased equipment costing $110,375 by paying $58,000 cash and signing a long-term notes payable for the balance. d. Paid $51,725 cash to reduce the long-term notes payable. e. Issued 3,900 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $52,900. Required: Prepare a complete statement of cash flows using a spreadsheet using the indirect method. Note: Enter all amounts as positive values. 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, and (4) all debits to Accounts Payable reflect cash payments for inventory. FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $ 652,500 Cost of goods sold 299,000 Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) 353,500 $ 146,400 34,750 181,150 Loss on sale of equipment Income before taxes Income taxes expense Net income Assets Cash Accounts receivable FORTEN COMPANY Comparative Balance Sheets December 31 Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable 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 (19,125) 153,225 43,850 $ 109,375 Current Year Prior Year $ 70,980 86,910 296,656 $ 87,500 64,625 265,800 1,350 2,175 455,816 420,100 143,500 (43,625) $ 555,691 $ 489,100 122,000 (53,000) $ 67,141 $ 135,675 72,200 139,341 183,750 58,500 71,550 207,225 164,250 B 174,100 117,625 $ 555,691 $ 489,100 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $19.125 (details in b). b. Sold equipment costing $88,875, with accumulated depreciation of $44,125, for $25,625 cash. c. Purchased equipment costing $110,375 by paying $58,000 cash and signing a long-term notes payable for the balance. d. Paid $51,725 cash to reduce the long-term notes payable. e. Issued 3,900 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $52,900. Required: Prepare a complete statement of cash flows using a spreadsheet using the indirect method. Note: Enter all amounts as positive values.
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