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 $ 88,500 65,625 $ 72,400 Cash 88,420 Accounts receivable 298,156 1,360 266,800 2,195 423,120 123,000 Inventory Prepaid expenses Total current assets 460,336 142,500 (44,125) Equipment Accum. depreciation-Equipment (53,500) $558,711 $492,620 Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities $ 68,141 14,500 $137,175 9,000 82,641 146,175 Long-term notes payable Total liabilities 57,500 140,141 63,750 209,925 Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings 165,250 185,250 60,000 173,320 _117,445 Total liabilities and equity $558,711 $492,620 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $657,500 300,000 357,500 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses $ 35,750 183,150 147,400 Other gains (losses) Loss on sale of equipment (20,125) 154,225 45,250 Income before taxes Income taxes expense $108,975 Net income Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $20,125 (details in b). b. Sold equipment costing $91,875, with accumulated depreciation of $45,125, for $26,625 cash. c. Purchased equipment costing $111,375 by paying $60,000 cash and signing a long-term note payable for the balance. d. Borrowed $5,500 cash by signing a short-term note payable. e. Paid $57,625 cash to reduce the long-term notes payable. f. Issued 4,000 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $53,100. 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.) 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: Cash flows from investing activities Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year %24 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 Debit Credit Balance sheet-debit 72,400 Cash 88,500 Accounts receivable 65,625 Inventory 266,800 Prepaid expenses 2,195 Equipment 123,000 546,120 $ 72,400 Balance sheet-credit Accumulated depreciation-Equipment 53,500 Accounts payable 137,175 Short-term notes payable 9,000 63,750 Long-term notes payable Common stock, $5 par value 165,250 Paid-in capital in excess of par value, common stock Retained earnings 117,445 546,120 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 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.) GOLDEN CORPORATION 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: Cash flows from investing activities Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year Required: Prepare a complete statement of cash flows using a spreadsheet under the indirect method. (Enter all amounts positive values.) GOLDEN CORPORATION Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Analysis of Changes December 31, Prior December 31, Credit Debit Year Current Year Balance sheet-debit balance accounts 119,100 Cash 175,000 Accounts receivable 82.000 Inventory 537,000 Equipment 310,000 1,048,100 Balance sheet-credit balance accounts Accumulated depreciation-Equipment 109,500 Accounts payable 82,000 Income taxes payable 30,600 Common stock, $2 par value 579,000 Paid-in capital in excess of par value, common stock 176,500 Retained earnings 70,500 1,048,100 Statement of cash flows Operating activities Paid-in capital in excess of par value, common stock 176,500 Retained earnings 70,500 $ $ 1,048,100 Statement of cash flows Operating activities Investing activities Financing activities