Sales Cost of goods sold Gross profit FORTEN COMPANY Income Statement For Current Year Ended December 31 Operating expenses (excluding depreciation) $ 141,400 Depreciation expense Other gains (losses) Loss on sale of equipment Income before taxes $ 627,500 294,000 333,500 29,750 171,150 (14,125) Income taxes expense Net income Assets Cash Accounts receivable 148,225 36,850 $ 111,375 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 63,400 79,360 $ 82,500 59,625 260,800 Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable 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 289,156 1,300 2,075 433,216 405,000 148,500 (41,125) $ 540,591 $ 62,141 73,200 135,341 176,250 117,000 (50,500) $ 471,500 $ 128,175 65,550 193,725 159,250 51,000 178,000 $ 540,591 0 118,525 $ 471,500 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $14,125 (details in b). b. Sold equipment costing $73,875, with accumulated depreciation of $39,125, for $20,625 cash. c. Purchased equipment costing $105,375 by paying $48,000 cash and signing a long-term notes payable for the balance. d. Paid $49,725 cash to reduce the long-term notes payable. e. Issued 3,400 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $51,900. quired: Prepare a complete statement of cash flows using a spreadsheet using the indirect method. (Enter all amounts as positive values.) Balance sheet-debit Cash Accounts receivable Inventory Prepaid expenses Equipment Balance sheet-credit Accumulated depreciation-Equipment Accounts payable FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Analysis of Changes December 31, Prior December 31, Year Debit Credit Current Year Long-term notes payable Common stock, $5 par value Paid-in capital in excess of par value, common stock Retained earnings $ 82,500 $ 63,400 59,625 $ 19,735 79,360 260,800 28,356 289,156 2,075 $ 775 1,300 117,000 $ 522,000 $ 433,216 $ 50,500 128,175 65,550 159,250 0 118,525 $ 522,000 < Prev Gm $ 59,875 $ 59,875 of 5 Next >