INIL JUHUDIIY NIUNIULUI UPPULJ IU LIL YUL JUNIJ UISPUYLUDLIU. 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. Prior Year FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Assets Cash $ 66,400 Accounts receivable 82,380 Inventory 292,156 Prepaid expenses 1,320 Total current assets 442, 256 Equipment 146,500 Accum. depreciation-Equipment (42, 125) Total assets $546,631 Liabilities and Equity Accounts payable $ 64,141 Short-term notes payable 13,300 Total current liabilities 77,441 Long-term notes payable 59,500 Total liabilities 136,941 Equity Common stock, $5 par value 179,250 Paid-in capital in excess of par, 54,000 common stock Retained earnings 176, 440 Total liabilities and equity $546,631 $ 84,500 61,625 262,800 2,115 411,040 119,000 (51,500) $ 478,540 $131,175 8,200 139, 375 59,750 199,125 161,250 0 118,165 $ 478,540 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $637,500 Cost of goods sold 296,000 Gross profit 341,500 Operating expenses Depreciation expense $ 31,750 Other expenses 143,400 175,150 Other gains (losses) Loss on sale of (16, 125) equipment Income before taxes 150, 225 Income taxes expense 39,650 Net income $110,575 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $16,125 (details in b). b. Sold equipment costing $79,875, with accumulated depreciation of $41,125, for $22,625 cash. c. Purchased equipment costing $107,375 by paying $52,000 cash and signing a long-term note payable for the balance. d. Borrowed $5,100 cash by signing a short-term note payable. e. Paid $55,625 cash to reduce the long-term notes payable. f. Issued 3,600 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $52,300. Required: Prepare a complete statement of cash flows using a spreadsheet using the indirect method. (Enter all amounts as positive values.) FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Analysis of Changes December 31, Debit Credit Prior Year December 31, Current Year $ 66,400 Balance sheet-debit Cash Accounts receivable Teceivable Inventory Prepaid expenses Equipment 84,500 61,625 262,800 2,115/ 119,000 530,040 $ $ 66,400 $ Balance sheet-credit Accumulated depreciation Equipment Accounts payable Short-term notes payable Long-term notes payable Common stock, $5 par value Paid-in capital in excess of par value, common stock Retained earnings 51,500 131,1751 8,200 59,750 161,250 118,165 530,040 $ Statement of cash flows Operating activities Net income Decrease in accounts payable Increase in inventory Decrease in prepaid expenses Increase in accounts payable Loss on sale of equipment Investing activities Receipt from sale of equipment Payment to purchase equipment Financing activities Borrowed on short-term note Payment on long-term note Issued common stock for cash Payment of cash dividends Non cash investing and financing activities Purchase of equipment financed by long- term note payable $ 0 $ 0