[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 Assets Cash Accounts receivable $ 61,900 77,850 Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets 287,656 $ 81,500 58,625 259,800 1,290 2,055 428,696 401,980 149,500 116,000 (40,625) (50,000) $537,571 $467,980 Liabilities and Equity Accounts payable $ 61,141 $126,675 Short-term notes payable 12,400 7,600 Total current liabilities 73,541 134,275 Long-term notes payable 61,000 56,750 Total liabilities 134,541 191,025 Equity Common stock, $5 par value 174,750 158,250 Paid-in capital in excess of par, common 49,500 0 stock Retained earnings 178,780 118,705 Total liabilities and equity $537,571 $467,980 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses $622,500 293,000 329,500 Common stock, $5 par value 174,750 158,250 Paid-in capital in excess of par, common 49,500 0 stock Retained earnings 178,780 118,705 Total liabilities and equity $537,571 $467,980 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold $622,500 293,000 Gross profit 329,500 Operating expenses Depreciation expense $ 28,750 Other expenses Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense 140,400 169,150. (13,125) 147,225 35,450 Net income $111,775 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $13,125 (details in b). b. Sold equipment costing $70,875, with accumulated depreciation of $38,125, for $19,625 cash. c. Purchased equipment costing $104,375 by paying $46,000 cash and signing a long-term note payable for the balance. d. Borrowed $4,800 cash by signing a short-term note payable. e. Paid $54,125 cash to reduce the long-term notes payable. f. Issued 3,300 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $51,700. Problem 12-3A Indirect: Statement of cash flows LO A1, P2, P3 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.) FORTEN COMPANY Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: 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 QS 12-17 Computing financing cash outflows LO P3 A comparative balance sheet and Income statement is shown for Cruz, Inc. CRUZ, INC. Comparative Balance Sheets December 31, 2019 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Furniture Accum. depreciation- Furniture Total assets Liabilities and Equity 2019 2018 $ 91,100 $ 22,900 39,100 48,600 81,800 91,300 5,200 4,100 217,200 166,900 105,000 116,200 (16,200) (8,700) $306,000 $274,400 Accounts payable $ 14,400 $ 20,200 Wages payable 8,600 4,500 Income taxes payable 1,400 2,500 Total current 24,400 27,200 liabilities Notes payable (long- 28,900 66,400 term) Total liabilities 53,300 93,600 Equity Common stock, $5 par value 216,400 172,100 Retained earnings Total liabilities and equity $306,000 $274,400 36,300 8,700 CRUZ, INC. Income Statement For Year Ended December 31, 2019 Sales Cost of goods sold $469,700 302,300 www Prev 3 of 5 CRUZ, INC. Income Statement For Year Ended December 31, 2019 Sales Cost of goods Bold Gross profit $469,700 302,300 167,400 Operating expenses Depreciation $36,200 expense Other expenses 85,900 122,100 Income before 45,300 taxes Income taxes 16,500 expense Net income $ 28,800 1. Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2019? 2. Assume that no additional notes payable are issued in 2019. What cash amount is paid to reduce the notes payable balance in 2019? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2019? Beg bal 2010 Net income Dividends paid End. bal. Retained Earnings 8,700 26,800 37,500 Required 2 > CRUZ, INC. Income Statement For Year Ended December 31, 2019 Sales Cost of goods Bold Gross profit $469,700 302,300 167,400 Operating expenses Depreciation $36,200 expense Other expenses 85,900 122,100 Income before 45,300 taxes expense Income taxes Net income 16,500 $ 28,800 Assume that all common stock is issued for cash. What amount of cash dividends is paid during 2019? Assume that no additional notes payable are issued in 2019. What cash amount is paid to reduce the Otes payable balance in 2019? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume that no additional notes payable are issued in 2019. What cash amount is paid to reduce the notes payable balance in 2019? eg bal "ayment on notes payable und bal Notes Payable 66.400 66,400 Required 1