[The following information applies to the questions displayed below) Forten Company's current year income statement, comparative balance sheets, and addonol information follow For the year. (1) all sales are credit sales. (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) purchases of inventory are on credit and (4) all debits to Accounts Payable reflect cash payments for inventory FORTEN CON Inco Statet For Current Year Endet er Sales 3622,5 cost of goods sold Gross profit 129. Operating expenses (excluding depreciation) 5.110,00 Depreciation expense 169.14 Other ins (losses) LOSS on sale of equipment 147.223 Inco before taxe Incore taxes expense $ 18, Net Incore FORTEN CORONY Comparative sunce Sheet Decent Current Prie 3. 3, 2.55 25.0 Assets Canh MENE receivable Inventory Prepaid expenses Total current state 01. . . 3,73 Accutulatas erectisquipment Totalt tibilities and Equity Accounts payable 41 $ 61,141 2400 334,541 Liabilities and Equity Accounts payable Long-ters notes payable Total liabilities Equity Connon stock, 15 par value Paid-in capital in excess of par, con stock Retained earnings Total liabilities and equity 5 126,675 650 191,025 158,250 174,750 49,500 178,7 $ 537,521 1203 1467,90 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $13,125 (details in ). 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 notes payable for the balance d. Paid $49,325 cash to reduce the long-term notes payable e. Issued 3.300 shares of common stock for $20 cash per share. 1. Declared and paid cash dividends of $51.700 1. Prepare a complete statement of cash flowing the actod for the current year mounts to be deducted chodbe indicated with a minus sign) FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flow from operating actes Adjustments to reconcile net income to net cash provided by operations Income statementem not acting cash Changes in Current ants and current liabilities . 5 Cash flows from investing activities Cash Tows from Francing activities $ let increase (crease in cash Can balance at December 31 proy Cathebar 31 tunta Pre 101 [The following information apples to the questions displayed below) Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (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 $622.500 Cost of goods sold 293.000 Gross profit 329,500 Operating expenses (excluding depreciation) $ 140,400 Depreciation expense 28750 169,150 Other gains flosses) Loss on sale of equipment 13.125 Income before taxes Income taxes expense 35.450 Net Income $ 114775 147225 FORTEN COMPANY Comparative Balance Sheets December 31 Current Yeat Prior Year $61900 77.850 287655 1290 428,696 149.500 (40.525) $537571 $ 81.500 58,625 259,800 2.055 401980 116.000 150.000) $ 467.980 Assets Cash Accounts receivable 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 $ 61541 73,400 134541 $126.675 64,350 191025 174750 49.500 178780 $537571 158.250 0 TI8705 $ 467,980 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $13.125 (details in b. Sold equipment costing $70.875, with accumulated depreciation of $38125, for $19.625 cash c. Purchased equipment costing $104.375 by paying $46,000 cash and signing a long-term nates payable for the balance. d. Paid $49,325 cash to reduce the long-term notes payable e Issued 3,300 shares of common stock for $20 cash per share 1. Declared and paid cash dividends of $51700 1. Award: 10.00 points 1. Award: 10.00 points 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 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 Changes in current assets and current liabilities $ 0 Cash flows from investing activities 0 Cash flows from financing activities 0 $ 0 Net increase (decrease in cash Cash balance at December 31. prior year Cash balance at December 31, current year $ 0