Required information Use the following information for the Problems below. (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 $ 72,400 88, 420 298,156 1,360 460,336 142,500 (44,125) $558,711 $ 88,500 65,625 266, 800 2,195 423, 120 123,000 (53,500) $492,620 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Meeum. 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, 55 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 68,141 14,500 82,641 57.500 140,141 $137.175 9,000 146,175 63,250 209,925 185,250 60,000 173 320 $558,711 165,250 0 117.445 $492,620 was Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity 60,000 173,320 $558,711 0 117,445 $492,620 FORTEN COMPANY Income Statement For Current Year Ended December 31 2:59 Sales $657,500 300,000 357.500 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Other gains (losses) Los on sale of equipment Income before taxes Income taxes expense Net income $ 35,750 147, 400 183,150 (20,125) 154,225 45,250 $108,975 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $20,125 (details in b). b. Sold equipment costing $91,875, with accumulated depreciation of $45,125, for $26,625 cash, c. Purchased equipment costing $111,375 by paying $60,000 cash and signing a long-term note payable for the balance. d. Borrowed $5.500 cash by signing a short-term note payable. e. Paid $57,625 cash to reduce the long-term notes payable. f. Issued 4,000 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $53,100. Problem 12-4AA Indirect: Cash flows spreadsheet LO P4 Required: Prepare a complete statement of cash flows using a spreadsheet using the indirect method (Enter all amounts as positive values.) Requirea: Prepare a complete statement of cash flows using a spreadsheet using the indirect method. (Enter all amounts as positive va Answer is not complete. FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Analysis of Changes December 31, Prior Year Debit Credit December 31, Current Year Balance sheet-debit Cash 88,500 $ 72,400 Accounts receivable 65,625 266,800 Inventory Prepaid expenses Equipment 2,195 123,000 $ 546,120 $ 72,400 $ 53,500 137,175 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 9,000 63,750 165,250 0 Retained earnings 117.445 $ 546.120 s 0 Statement of cash flows Operating activities Net income 108,975 UVOHI WA put urvu. WHILIB Retained earnings 117.445 S 546,120 0 Statement of cash flows Operating activities Net income 108,975 35,750 20,125 Depreciation expense Loss on sale of equipment Increase in Inventory Increase in accounts receivable Decrease in prepaid expenses Decrease in accounts payable OOOO 31,356 3 22.795 835 66,475 42,500 Investing activities Receipt from sale of equipment Payment to purchase equipment oo 26,625 60,000 33,375 Financing activities Issued common stock for cash Borrowed on short-term noto Payment on long-term note Payment of cash dividends 80,000 5,500 57,6253 53.100 25,225 Non cash investing and financing activities Purchase of equipment financed by long-term note payable 111,375 60,000 $ 505,086 $ 294,050