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 $ 63,400 $ 82,500 Accounts receivable 79,360 59,625 Inventory 289,156 260,800 Prepaid expenses 1,300 2,075 Total current assets 433,216 405,000 Equipment 148,500 117,000 Accum. depreciationEquipment (41,125 ) (50,500 ) Total assets $ 540,591 $ 471,500 Liabilities and Equity Accounts payable $ 62,141 $ 128,175 Short-term notes payable 12,700 7,800 Total current liabilities 74,841 135,975 Long-term notes payable 60,500 57,750 Total liabilities 135,341 193,725 Equity Common stock, $5 par value 176,250 159,250 Paid-in capital in excess of par, common stock 51,000 0 Retained earnings 178,000 118,525 Total liabilities and equity $ 540,591 $ 471,500 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $ 627,500 Cost of goods sold 294,000 Gross profit 333,500 Operating expenses Depreciation expense $ 29,750 Other expenses 141,400 171,150 Other gains (losses) Loss on sale of equipment (14,125 ) Income before taxes 148,225 Income taxes expense 36,850 Net income $ 111,375 Additional Information on Current Year Transactions The loss on the cash sale of equipment was $14,125 (details in b). Sold equipment costing $73,875, with accumulated depreciation of $39,125, for $20,625 cash. Purchased equipment costing $105,375 by paying $48,000 cash and signing a long-term note payable for the balance. Borrowed $4,900 cash by signing a short-term note payable. Paid $54,625 cash to reduce the long-term notes payable. Issued 3,400 shares of common stock for $20 cash per share. Declared and paid cash dividends of $51,900. 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.) Next Visit question mapQuestion 2 linked to 3 of 5 Total 2 3 of 5 P

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		$	63,400					$	82,500
Accounts receivable			79,360						59,625
Inventory			289,156						260,800
Prepaid expenses			1,300						2,075
Total current assets			433,216						405,000
Equipment			148,500						117,000
Accum. depreciationEquipment			(41,125	)					(50,500	)
Total assets		$	540,591					$	471,500
Liabilities and Equity
Accounts payable		$	62,141					$	128,175
Short-term notes payable			12,700						7,800
Total current liabilities			74,841						135,975
Long-term notes payable			60,500						57,750
Total liabilities			135,341						193,725
Equity
Common stock, $5 par value			176,250						159,250
Paid-in capital in excess of par, common stock			51,000						0
Retained earnings			178,000						118,525
Total liabilities and equity		$	540,591					$	471,500

FORTEN COMPANY Income Statement For Current Year Ended December 31
Sales				$	627,500
Cost of goods sold					294,000
Gross profit					333,500
Operating expenses
Depreciation expense	$	29,750
Other expenses		141,400			171,150
Other gains (losses)
Loss on sale of equipment					(14,125	)
Income before taxes					148,225
Income taxes expense					36,850
Net income				$	111,375

Additional Information on Current Year Transactions

1. The loss on the cash sale of equipment was $14,125 (details in b).
2. Sold equipment costing $73,875, with accumulated depreciation of $39,125, for $20,625 cash.
3. Purchased equipment costing $105,375 by paying $48,000 cash and signing a long-term note payable for the balance.
4. Borrowed $4,900 cash by signing a short-term note payable.
5. Paid $54,625 cash to reduce the long-term notes payable.
6. Issued 3,400 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $51,900.

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:
		$0
Cash flows from investing activities
		0
Cash flows from financing activities:
		0
Net increase (decrease) in cash		$0
Cash balance at December 31, prior year
Cash balance at December 31, current year		$0