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.)

Required: 2. Prepare a complete statement of cash flows using a spreadsheet using the indirect method. (Enter all amounts as positive values.)

Please do all parts! Thank you

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 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment $ 66,400 82,380 292,156 1,320 442,256 146,500 (42,125) $546,631 $ 84,500 61,625 262,800 2,115 411,040 119,000 (51,500) $478,540 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 $ 64,141 13,300 77,441 59,500 136,941 $131,175 8,200 139, 375 59,750 199,125 179, 250 54,000 176,440 $546,631 161,250 0 118,165 Total liabilities and equity $ 478,540 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $637,500 296,000 341,500 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Other gains (losses) Loss on sale of equipment Income before taxes $ 31,750 143,400 175,150 (16,125) 150,225 39,650 Income taxes expense 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. FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: $ 0 Cash flows from investing activities 0 Cash flows from financing activities: 0 $ 0 Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year $ FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Analysis of Changes December 31, Prior Year Debit Credit December 31, Current Year Balance sheet-debit Cash $ 84,500 $ 66,400 Accounts receivable 61,625 Inventory 262,800 Prepaid expenses 2,115 Equipment 119,000 530,040 66,400 Balance sheet credit Accumulated depreciationEquipment 51,500 Accounts payable 131,175 Short-term notes payable 8,200 Long-term notes payable 59,750 Long-term notes payable 59,750 Common stock, $5 par value 161,250 Paid-in capital in excess of par value, common stock 0 Retained earnings 118,165 $ 530,040 $ 0 Statement of cash flows Operating activities Investing activities Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term note payable 0 $ 0