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 Accounts receivable Inventory Prepaid expenses Total current assets $ 67,900 83,800 293,656 85.500 62.625 263.889 416,776 145,50 42, 625 ) $549,651 414, 120,000 (52,000) $132.675 Accum. depreciation Equipment Total assets Liabilities and Equity Accounts payable Short-Eet notes payable Total current liabilities Long-term mates payable Total liabilities Equity Common stock, 55 par value Paid in capital in excess of par, common stock $65. 141 13,600 78,741 5 ,075 201825 162, 250 180.758 55,500 175,660 $549,652 Total liabilities and equity 117,95 $482,060 FORTEN COMPANY For Current Year Ended December 31 Cost of goods sold Gross profit $642,500 297.000 345, 500 $ 32, 750 144, 400 177.158 Depreciation expense Other expenses Other gains (losses) LO5s on sale of equipment Income taxes expense Net Income 151,225 41.050 $118,175 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $17,125 (details in b. Sold equipment costing $82,875, with accumulated depreciation of $42.125, for $23,625 cash. Purchased equipment Costing $108 375 by paying $54 000 cash and signing a long term note payable for the balance d. Borrowed $5,200 cash by signing a short-term note payable e Paid $56,125 cash to reduce the long term notes payable. .Issued 3.700 shares of common stock for $20 cash per share. 9. Declared and paid cash dividends of $52500 Required: D e adsheet 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, Prior Debit Credit Year Current Year Balance sheetdebit Cash I $ 67.900 Accounts receivable Inventory 85,500 62,625 263.800 2,135 120,000 534 060 Prepaid expenses Equipment S $ Balance sheel-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 52,000 132,675 8.400 60.750 162.250 of 117.985 534,060 S Statement of cash flows Operating activities 534,060 Statement of cash flows Investing activities Financing activites Non cash investing and financing activities Purchase of equipmenanced by long-term note payable