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Required information Skip to question [The following information applies to the questions displayed below.] Forten Company's current year income statement, comparative balance sheets, and additional

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[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, and (4) all debits to Accounts Payable reflect cash payments for inventory.

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 (excluding depreciation) $ 143,400
Depreciation expense 31,750 175,150
Other gains (losses)
Loss on sale of equipment (16,125)
Income before taxes 150,225
Income taxes expense 39,650
Net income $ 110,575

FORTEN COMPANY
Comparative Balance Sheets
December 31
Current Year Prior Year
Assets
Cash $ 66,400 $ 84,500
Accounts receivable 82,380 61,625
Inventory 292,156 262,800
Prepaid expenses 1,320 2,115
Total current assets 442,256 411,040
Equipment 146,500 119,000
Accumulated depreciationEquipment (42,125) (51,500)
Total assets $ 546,631 $ 478,540
Liabilities and Equity
Accounts payable $ 64,141 $ 131,175
Long-term notes payable 72,800 67,950
Total liabilities 136,941 199,125
Equity
Common stock, $5 par value 179,250 161,250
Paid-in capital in excess of par, common stock 54,000 0
Retained earnings 176,440 118,165
Total liabilities and equity $ 546,631 $ 478,540

Additional Information on Current Year Transactions

  1. The loss on the cash sale of equipment was $16,125 (details in b).
  2. Sold equipment costing $79,875, with accumulated depreciation of $41,125, for $22,625 cash.
  3. Purchased equipment costing $107,375 by paying $52,000 cash and signing a long-term notes payable for the balance.
  4. Paid $50,525 cash to reduce the long-term notes payable.
  5. Issued 3,600 shares of common stock for $20 cash per share.
  6. Declared and paid cash dividends of $52,300.

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.)image text in transcribed

Please help and show how to solve Cash paid on long-term notes, cash received from issuing stock, cash paid for dividends, and cash received from the sale of equipment.

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.) Answer is not complete. FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Net income $ Adjustments to reconcile net income to net cash provided by operations: Income statement items not affecting cash Depreciation expense 110,575 31,750 Changes in current assets and current liabilities Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Decrease in accounts payable (20,755) (29,356) 795 (67,034) S 25,975 Net cash provided by operating activities Cash flows from investing activities Cash paid for equipment Cash received from sale of equipment (52,000) (52,000) Net cash used in investing activities Cash flows from financing activities: Cash paid on long-term notes Cash received from issuing stock Cash paid for dividends 4,850 X 18,000 S Net cash used in financing activities Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year 22,850 (3,175) 84,500 81,325 S

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