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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

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 $ 54,400 $ 76,500
Accounts receivable 70,310 53,625
Inventory 280,156 254,800
Prepaid expenses 1,280 2,005
Total current assets 406,146 386,930
Equipment 154,500 111,000
Accum. depreciationEquipment (38,125 ) (47,500 )
Total assets $ 522,521 $ 450,430
Liabilities and Equity
Accounts payable $ 56,141 $ 119,175
Short-term notes payable 10,900 6,600
Total current liabilities 67,041 125,775
Long-term notes payable 63,500 51,750
Total liabilities 130,541 177,525
Equity
Common stock, $5 par value 167,250 153,250
Paid-in capital in excess of par, common stock 42,000 0
Retained earnings 182,730 119,655
Total liabilities and equity $ 522,521 $ 450,430

FORTEN COMPANY Income Statement For Current Year Ended December 31
Sales $ 597,500
Cost of goods sold 288,000
Gross profit 309,500
Operating expenses
Depreciation expense $ 23,750
Other expenses 135,400 159,150
Other gains (losses)
Loss on sale of equipment (8,125 )
Income before taxes 142,225
Income taxes expense 28,450
Net income $ 113,775

Additional Information on Current Year Transactions

  1. The loss on the cash sale of equipment was $8,125 (details in b).
  2. Sold equipment costing $55,875, with accumulated depreciation of $33,125, for $14,625 cash.
  3. Purchased equipment costing $99,375 by paying $36,000 cash and signing a long-term note payable for the balance.
  4. Borrowed $4,300 cash by signing a short-term note payable.
  5. Paid $51,625 cash to reduce the long-term notes payable.
  6. Issued 2,800 shares of common stock for $20 cash per share.
  7. Declared and paid cash dividends of $50,700.

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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 Debit Credit Cedit Year December 31, Current Year $ 54,400 Balance sheetdebit Cash Accounts receivable Inventory Prepaid expenses Equipment 76,500 53,625 254,800 2,005 111,000 497,930 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 47,500 119,175 6,600 51,750 153,250 119,655 497,930 Statement of cash flows Operating activities 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

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