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 debits to Accounts Payable reflect cash payments for inventory. FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) $ 133,400 21,750 Depreciation expense Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets FORTEN COMPANY Comparative Balance Sheets December 31 Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Common stock, $5 par value DLL - ---LL-1 atual. a

Required information [The following information appines ro the quertions displayd below] Forten Company's current year income statement, comporotwe bacspce sheets, and additional information foilow. For the year, (f) all sales are credi sales, (2) af creaits to Acrounts Receinble relect cash receipts ticm eustomers, (3) all purehases of irfventary are on credit, and (4) ali debits to Acoounts Payabie seflect cosh payments for imwentary. FORTEN COMPANY Income Statement \begin{tabular}{lrr} & For Current Year Ended December 31 & \\ Sales & & $87,500 \\ Cost of goods sold & 286,000 \\ Gross prof it & & 301,500 \\ Operating expenses (excluding depreciation) & 133,400 & \\ Depreciation expense & 21,750 & 155,150 \\ Other gains (losses) & & (6,125) \\ \hline Loss on sate of equipment & 140,225 \\ Incone before taxes & & 25,650 \\ \hline Income taxes expense & $114,575 \\ Net income \end{tabular} FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $6,125 (details in b) b. Sold equipment costing $49,875, with accumulated depreciation of $31,125, for $12,625 cash. c. Purchased equipment costing $97,375 by paying $32,000 cash and signing a long-term notes payable for the balance d. Paid $46,525 cash to reduce the long-term notes payable. e. Issued 2,600 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,300. Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be ndicated 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: Income statement items not affecting cash Cash flows from investing activities Cash flows from financing activities