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 Accu, depreciation Equipment Total assets Liabilities and Equity Accounts payable $ 79,900 95,970 305,656 1,410 482,936 137,500 (46,635) 5573,031 $ 93,500 70,625 271,00 2.295 438,220 128, Bee (56.000) $ 510,220 $ 73,141 $144.675 (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 $ 79,900 95,970 305,656 1,410 482,936 137,500 (46,625) $ 573,811 $ 93, see 70,625 271,800 2,295 438, 220 128, eee (56, eee) $ 510,220 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 Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 73,141 16,000 89, 141 55, eee 144, 141 $ 144,675 10,000 154,675 68,75e 223,425 192,75e 67,500 169,420 $573,811 170,250 e 116,545 $ 510,220 $ 682,500 305,000 377,588 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 40, 75e Other expenses 152,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 193,152 (25, 125 159, 225 52,250 $ 106,975 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $25,125 (details in b). b. Sold equipment costing $106,875, with accumulated depreciation of $50,125, for $31,625 cash. c. Purchased equipment costing $116,375 by paying $70,000 cash and signing a long-term note payable for the balance d. Borrowed $6,000 cash by signing a short-term note payable. e. Pald $60,125 cash to reduce the long-term notes payable. f. Issued 4.500 shares of common stock for $20 cash per share, Prev 1 2 of 2 Next > 1 1 Part 10 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $25,125 (details in b. Sold equipment costing S106,875, with accumulated depreciation of $50,125, for $31625 cash c. Purchased equipment costing $116,375 by paying $70,000 cash and signing a long-term note payable for the balance d. Borrowed $6,000 cash by signing a short term note payable. e. Paid $60,125 cash to reduce the long-term notes payable 1. Issued 4,500 shares of common stock for $20 cash per share 9. Declared and paid cash dividends of $54,100 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 Cathos from operating at art of 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 reconle net income to net cash provided by operation Required information - 1 of 2 Cash flows from investing activities eBook Cash flows from financing activities; Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year
