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, and (4) all debits to Accounts Payable reflect cash payments for inventory $582,500 285,000 297,500 FORTEN COMPANY Income statement For Current Year Ended December 31 Sales cost of goods sold Gross profit Aperating expenses (excluding depreciation) $132, 400 Depreciation expense 20, 750 other gains (losses Los on sale of equipment Income before taxes Themie taxes expense Ne income 153, 150 (5.125) 139,225 24,250 $114,975 Income before taxes Income taxes expense Nerincone 139, 225 24, 259 $114,975 FORTEN COMPANY Comparative Balance Sheets December 31 current Year Peion Year $ 49,899 65, 810 275, 656 1, 250 392,516 157,500 (36,625) $513,391 $ 73,500 5e, 625 251,888 1, 875 377, 880 108,000 (46, 088) $439, 889 Assets Cash 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 $ 53, 141 10,000 63, 141 65,000 128,141 $114,675 6,000 120, 675 48,750 169, 425 150, 250 162,750 37.500 185,000 1513, 391 120. 125 $439 Bo information on Current Year Transactions a. lhe os on the ash sale of equipment was $5 125 (details in . b. Sokupneni costing $40 375. with accumulated depreciation of $30 125. for $1625 cash c. Purchased ediment costan5961075 bylina $30,000sliandisigning a long enote payable for the Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $5,125 (details in b) b. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11.625 cash. c. Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term note payable for the balance. d. Borrowed $4,000 cash by signing a short-term note payable. e. Paid $50.125 cash to reduce the long-term notes payable. 1. Issued 2.500 shares of common stock for $20 cash per share g. Declared and paid cash dividends of $50,100 FOR THE COMPANY ints Stunt of Cash Flow For Current Year End December 31 Cash flows from operating activities Increase in accounts payable eBook 15,185 50,625 Asik Cash borrowed on short-term note Cash paid for dividends Cash paid for equipment Cash paid for income taxes Cash paid for Inventory $ 65.810 Print O uferences 4.000 Cash flows from financing activities Cash borrored on short det noe Cash paid on long-term note Sash paid for dividende 50.125 50 100 10.12.2012 Nel termasech ERO stilet Der Decem FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Increase in accounts payable $ 15 1 50 Cash paid for operating expenses Cash paid on long-term note Cash received from customers + Cash received from issuing stock Cash received from sale of equipment Cash flows from operating activities Increase in accounts payable $ 1 k Decrease in accounts payable Decrease in accounts receivable Decrease in merchandise inventory Decrease in prepaid expenses 1 Depreciation expense TUSAN nces Cash flows from operating activities Increase in accounts payable $ Increase in accounts payable Increase in accounts receivable Increase in merchandise inventory Increase in prepaid expenses Loss on sale of equipment