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3 [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. (7) 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) oll debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses Part 2 of 2 5 points Skipped Prior Year eBook FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Assets Cash $ 79,900 Accounts receivable 95,970 Inventory 305,656 Prepaid expensen 1,410 Total current assets 482.936 Equipment 137,500 Accun. depreciation Equipment 146,625) Total assets $573, 811 Liabilities and Equity Accounts payable $ 73,141 Short-tern notes payable 16,000 Total current liabilities 89,141 Tong-term notes payable 55,000 Total liabilities 144, 141 Equity Common stock, $5 par value 192,750 Paid-in capital in excess of par, common stock 67,500 Retained earnings 169,420 Total liabilities and equity $573,811 5 93,500 70,625 271,800 2,295 438,220 128,000 56,000) $510,220 Print Reference $144,675 10,000 154,675 68,750 223,425 170,250 0 116.545 $510,220 FORTEN COMPANY Income Statement For Current Tear Ended December 31 Sales $682,500 Cost of goods sold 305,000 Gross profit 377,500 Operating expenses Depreciation expenses 40,750 Other expenses 152,400 193,150 Other gains (losses) Loss on sale of egalment (25,125) Theone before taxes 159, 225 Income taxes expense 52.250 Set income 5106,975 Additional Information on Current Year Transactions The loss on the cash sale of equipment was $25,125 (details in b. Sold equipment Costing $106.075, with accumulated depreciation of $50125. for $31625 cash Purchased equipment conting $116,375 by paying $70,000 cash and signing a long teen note pale for the balance d. Borgwed $6.000 cash by signing a short term opet Pad 560125 cash to reduce the long term ots payable wed 4500 wheres of common stock for $20 cash per share 9. Declared and paid cash dividends of $54100 Required Prepare a complete alement of cash flows using spreadsheet in the Indirect memoral amounts FORTEN COMPANY Spreadsheet for Statement of Cash Flow For Currem Yew Ended December 31 Analyans of Changes December at Det 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. 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 Paid $60,125 cash to reduce the long-term notes payable. tissued 4,500 shares of common stock for $20 cash per share 9. Declared and paid cash dividends of $54,300. 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, Dabit Credit Prior Year December 31, Current Year $ $ 79,900 Balance sheet-debit Cash Accounts receivable Inventory Prepaid expenses Equipment 93,500 70.625 271.800 2.295 128.000 566.220 $ $ 79,900 $ 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 56.000 144.675 10.000 66.750 170,250 0 $ 116.545 566,220 $ 0 Statement of cash flows Operating activities Investing activos Financing activities Non cash investing and financing activities Purchase of equipment financed by long. term note payable