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 Prior Year Current Year Assets $ 74,500 $ 51,400 67,310 277,156 1,300 Cash Accounts receivable Inventory 51,625 252,800 2,025 Prepaid expenses Total current assets 397,166 156,500 380,950 109,000 Equipment Accum. depreciation-Equipment (37,125) (46,500) $443,450 $516,541 Total assets Liabilities and Equity Accounts payable Short-term notes payable $ 54,141 10,300 $116,175 6,200 122,375 Total current liabilities 64,441 64,500 49,750 172,125 Long-term notes payable Total liabilities 128,941 Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings 164,250 39,000 184,350 151,250 0 120,075 $443,450 Total liabilities and equity $516,541 FORTEN COMPANY Income Statement For Current Year Ended December 31 $587,500 Sales 286,000 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Other gains (losses) Loss on sale of equipment 301,500 $21,750 133,400 155,150 (6,125) 140,225 25,650 Income before taxes Income taxes expense $114,575 Net income Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $6,125 (details in b) b. Sold equipment costing $49,875, with accumulated depreciation of $31,125, for $12,625 cash c. Purchased equipment costing $97,375 by paying $32,000 cash and signing a long-term note payable for the balance. d. Borrowed $4,100 cash by signing a short-term note payable. e. Paid $50,625 cash to reduce the long-term notes payable. f. Issued 2,600 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $50,300. 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 Prior Year December 31, Current Year Credit Debit Balance sheet-debit Cash $ 74,500 51,625 $ 51,400 Accounts receivable 252,800 Inventory Prepaid expenses Equipment 2,025 109,000 $ $ 489,950 51,400 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 46,500 116,175 6,200 49,750 151,250 39,000 0 39,000 120,075 $ 489,950 39,000 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 39,000 $ 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 Prior Year Current Year Assets $ 74,500 $ 51,400 67,310 277,156 1,300 Cash Accounts receivable Inventory 51,625 252,800 2,025 Prepaid expenses Total current assets 397,166 156,500 380,950 109,000 Equipment Accum. depreciation-Equipment (37,125) (46,500) $443,450 $516,541 Total assets Liabilities and Equity Accounts payable Short-term notes payable $ 54,141 10,300 $116,175 6,200 122,375 Total current liabilities 64,441 64,500 49,750 172,125 Long-term notes payable Total liabilities 128,941 Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings 164,250 39,000 184,350 151,250 0 120,075 $443,450 Total liabilities and equity $516,541 FORTEN COMPANY Income Statement For Current Year Ended December 31 $587,500 Sales 286,000 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Other gains (losses) Loss on sale of equipment 301,500 $21,750 133,400 155,150 (6,125) 140,225 25,650 Income before taxes Income taxes expense $114,575 Net income Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $6,125 (details in b) b. Sold equipment costing $49,875, with accumulated depreciation of $31,125, for $12,625 cash c. Purchased equipment costing $97,375 by paying $32,000 cash and signing a long-term note payable for the balance. d. Borrowed $4,100 cash by signing a short-term note payable. e. Paid $50,625 cash to reduce the long-term notes payable. f. Issued 2,600 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $50,300. 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 Prior Year December 31, Current Year Credit Debit Balance sheet-debit Cash $ 74,500 51,625 $ 51,400 Accounts receivable 252,800 Inventory Prepaid expenses Equipment 2,025 109,000 $ $ 489,950 51,400 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 46,500 116,175 6,200 49,750 151,250 39,000 0 39,000 120,075 $ 489,950 39,000 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 39,000 $