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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

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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 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, and (4) all deblts to Accounts Payable reflect cash payments for inventory. (1) Required information Indicated witn a minus sign.) 3 I IAnraciatinn ayranca 1) Required information 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, and (4) all debits to Accounts Payable reflect cash payments for inventory. Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $5,125 (detalis 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 notes payable for the balance. d. Paid $46,125 cash to reduce the long-term notes payable. e. Issued 2,500 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,100. 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.) (1) Required information \begin{tabular}{|l|l|l|} \hline Changes in current assets and current liabilities & & \\ \hline Increase in accounts recelvable & & \\ \hline Increase in inventory & & \\ \hline Decrease in accounts payable & & \\ \hline Decrease in prepaid expenses & & \\ \hline & Net cash provided by operating activities & \\ \hline Cash flows from investing activities & & \\ \hline Cash recelved from sale of equipment & & \\ \hline Cash pald for equipment & & \\ \hline & & \\ \hline Not cash used in investing activities & & \\ \hline Cash flows from financing activites: & \\ \hline Cash recelved from issuing stock & & \\ \hline Cash paid for dividends & & \\ \hline & \\ \hline & & \\ \hline Net cash used in financing activities & & \\ \hline Net increase (decrease) in cash & \\ \hline Cash balance at December 31, prior year & \\ \hline Cash balance at December 31, current year & \\ \hline \end{tabular}

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