Join a Meeting - Zo. m HBO Max Class FINANCIAL A. Mail-Bentley, Caro Accounting Book Help Saved Submit Save & Exit 20 Check my work Required information [The following information applies to the questions displayed below) 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 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 73,900 89,930 299,656 1,270 464,856 141,500 (44,625) $ 561, 731 $ 89,500 66,625 267,500 2,215 426,240 124.000 (54,000 $ 496,140 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, $5 par value Paid in capital in excess of par, common stock Retained earnings Total abilities and equity 5 69,141 14,300 83,941 57.100 140,941 $ 138,675 9,200 147.875 64,750 312.625 166,250 186,75 61,500 172,546 5561.73 127265 $ 496,140 FORTEN COMPANY Income Statement For Current Year Ended December 11 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $36.750 Other expenses 148,400 Other Rains (losses) 5662.500 381,000 361.se 185.350 Prey 1 of 1 Next Additional Information on Current Year Transactions Bok a. The loss on the cash sale of equipment was $21.125 (details in b). b. Sold equipment costing $94,875. with accumulated depreciation of $46,125, for $27625 cash c. Purchased equipment costing $112,375 by paying $62,000 cash and signing a long-term note payable for the balance, d. Borrowed $5,600 cash by signing a short-term note payable. e. Paid $58125 cash to reduce the long-term notes payable. f. Issued 4.100 shares of common stock for S20 cash per share. g. Declared and paid cash dividends of $53,300. ences 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.) 10 point FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities BOOK Adjustments to reconoile net income to net cash provided by operations Print bo References Cash ostrom investing activities Cash flows from financing activities Net increase (decreaso) in cas Cash balance at December 31, prior year Cash balance at December 31, current year
