Income Statement Data Revenues Expenses: Salaries expense Utilities expense Depreciation expense Interest expense Net loss Selected Year-End Balance Sheet Data $ 105,000 Accounts receivable decrease Purchased a machine for cash Salaries payable increase 70,000 30,000 Interest payable decrease 32,600 8,500 $ (36,100) $27,000 20,000 25,000 13,000 indicated with a minus sign.) Statement of Cash Flows (partial) Cash flows from operating activities-indirect method Adjustments to reconcile net income to net cash provided by operating activities Income statement items not affecting cash Changes in current operating assets and liabilities 0 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 $592,500 Cost of goods sold 287,000 Gross profit Depreciation expense Other gains (losses) Loss on sale of equipment 305,500 Operating expenses (excluding depreciation) $ 134,400 22,750 157,150 (7,125) Income before taxes Income taxes expense Net income 141,225 27,850 $114,175 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Comparative balance sheets December 11 Current Year Prior Year $52,900 68,810 $ 75,500 52,625 253,000 1,995 278,656 1,270 401,636 383,920 155,500 110,000 (37,625) (47,000) $519,511 $446,920 Accounts payable $55,141 $117,675 Long-term notes payable 74,600 57,150 Total liabilities 129,741 174,825 Equity Common stock, $5 par value 165,750 152,250 Paid-in capital in excess of par, common stock 40,500 Retained earnings 183,520 119,845 Total liabilities and equity $519,531 $446,920 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $7125 (details in b b. Sold equipment costing $52,875, with accumulated depreciation of $32.125, for $13,625 cash c. Purchased equipment costing $98,375 by paying $34,000 cash and signing a long-term notes payable for the balance. d. Paid $46,925 cash to reduce the long-term notes payable. e. Issued 2,700 shares of common stock for $20 cash per share f. Declared and paid cash dividends of $50,500 Cash flows from operating activities Statement of Casti Flows For Current Year Ended December 31 Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Changes in current assets and current liabilities Cash flows from investing activities n 0