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 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities $ 49,800 65,810 275,656 1,250 $ 73,500 50,625 251,800 1,875 392,516 377,800 157,500 108,000 (36,625) (46,000) $513,391 $439,800 $ 53,141 $114,675 10,000 6,000 63,141 120,675 Long-term notes payable 65,000 48,750 Total liabilities 128,141 169,425 Equity Common stock, $5 par value 162,750 150,250 Paid-in capital in excess of par, common stock 37,500 0 Retained earnings 185,000 120,125 Total liabilities and equity $513,391 $439,800 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $582,500 Cost of goods sold 285,000 Gross profit 297,500 Operating expenses Depreciation expense $ 20,750 Other expenses 132,400 153,150 Other gains (losses) Loss on sale of equipment (5,125) Income before taxes 139,225 Income taxes expense 24,250 Net income $114,975 Additional Information on Current Year Transactions 4 Prev 4 5 of 5 Next > Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $5,125 (details in b). b. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash. c. Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term note payable for the balance. d. Borrowed $4,000 cash by signing a short-term note payable. e. Paid $50,125 cash to reduce the long-term notes payable. f. Issued 2,500 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $50,100. 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 Balance sheet-debit Cash Accounts receivable Inventory Prepaid expenses Equipment Analysis of Changes December 31, Prior Year December 31, Debit Credit Current Year $ 73,500 $ 49,800 50,625 251,800 1,875 108,000 $ 485,800 $ 49,800 Balance sheet-credit Accumulated depreciation-Equipment $ 46,000 Accounts payable Short-term notes payable 114,675 6,000 Long-term notes payable 48,750 Common stock, $5 par value 150,250 Paid-in capital in excess of par value, common stock Retained earnings 0 $ 120,125 485,800 Statement of cash flows Operating activities Net income Increase in accounts receivable Increase in inventory $ 0