Saved ework Required i Required information $ $ Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at December 31. prior year Cash balance at December 31, current year $ $ L FLO $ 4 % 5 3 8 7 6 8 9 E R T 1 P purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory. Expenses are paid in advance and are initially debited to Prepaid Expenses. FORTEN COMPANY Comparative Balance Sheets December 31 Assets Prior Year Current Year Cash $ 52,900 68,810 278,656 1,270 401,636 155,500 (37,625) $ 519,511 $ 75,500 52,625 253,800 1,995 383,920 110,000 (47,000) $ 446,920 Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. 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, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 55,141 10,600 65,741 64,000 $ 117,675 6,400 124,075 50,750 174,825 129,741 165,750 40,500 183,520 $ $19,511 152,250 @ 119,845 $ 446,920 CARTER CDM ga e it a L 19 U co * X C F9 F10 F11 ske $ 4 % 5 3 6 & 7 8 9 E R T Y ID TE G y y! y! G Y! cic Y? W y! 3 X Y! V! ducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fccbcmd-bb.blackboard.com%252Fw mework Required a Saved HE $ 592,500 287,080 305,500 Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 22,750 Other expenses 134,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 157,150 (7,125) 141,225 27,050 $ 114,175 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $7125 (details in b). b. Sold equipment costing $52,875, with accumulated depreciation of $32.125, for $13,625 cash c. Purchased equipment costing $98,375 by paying $34,000 cash and signing a long-term note payable for the balan d. Borrowed $4,200 cash by signing a short-term note payable e. Paid $51,125 cash to reduce the long-term notes payable. f. Issued 2.700 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $50,500. Problem 16-5AB Direct: Statement of cash flows LO P5 L B FSO - $ 4 % 5 3 & 7 ( 9 6 8 0 Saved ework Required i Required information $ $ Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at December 31. prior year Cash balance at December 31, current year $ $ L FLO $ 4 % 5 3 8 7 6 8 9 E R T 1 P purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory. Expenses are paid in advance and are initially debited to Prepaid Expenses. FORTEN COMPANY Comparative Balance Sheets December 31 Assets Prior Year Current Year Cash $ 52,900 68,810 278,656 1,270 401,636 155,500 (37,625) $ 519,511 $ 75,500 52,625 253,800 1,995 383,920 110,000 (47,000) $ 446,920 Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. 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, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 55,141 10,600 65,741 64,000 $ 117,675 6,400 124,075 50,750 174,825 129,741 165,750 40,500 183,520 $ $19,511 152,250 @ 119,845 $ 446,920 CARTER CDM ga e it a L 19 U co * X C F9 F10 F11 ske $ 4 % 5 3 6 & 7 8 9 E R T Y ID TE G y y! y! G Y! cic Y? W y! 3 X Y! V! ducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fccbcmd-bb.blackboard.com%252Fw mework Required a Saved HE $ 592,500 287,080 305,500 Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 22,750 Other expenses 134,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 157,150 (7,125) 141,225 27,050 $ 114,175 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $7125 (details in b). b. Sold equipment costing $52,875, with accumulated depreciation of $32.125, for $13,625 cash c. Purchased equipment costing $98,375 by paying $34,000 cash and signing a long-term note payable for the balan d. Borrowed $4,200 cash by signing a short-term note payable e. Paid $51,125 cash to reduce the long-term notes payable. f. Issued 2.700 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $50,500. Problem 16-5AB Direct: Statement of cash flows LO P5 L B FSO - $ 4 % 5 3 & 7 ( 9 6 8 0