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, ( 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 $ 20,9ee 86,912 296.656 1.350 455.876 143.5ee 25 $ 555,691 $87. See 6 4,625 2 65.ee 24135_ 428.10 122 5489.100 Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-ter notes payable Total current liabilities Long-ter notes payable Total liabilities Equity Common stock, 55 par value Paid-in capital in excess of par, c Retained earnings Total liabilities and equity $67.141 $ 135,675 81.41 58.00 139.341 144.425 572250 207, 225 164.258 on stock 58. Sap 1741B $ 555.591 1121525 $489.100 $ 652.500 353,500 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 4,750 Other expenses 10/ Other gains (losses) Loss on sale of equipment Ince before taxes Income taxes expense Net Income 181, 15e 010125 153.225 $109.375 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $19,125 (details in bj. b. Sold equipment costing 588.875, with accumulated depreciation of $44,125, for $25.625 cash c. Purchased equipment costing $110.375 by paying $58.000 cash and signing a long-term note payable for the balance d. Borrowed $5.400 cash by signing a short-term note payable. e. Paid $57125 cash to reduce the long-term notes payable. Issued 3.900 shares of common stock for $20 cash per share Declared and paid cash dividends of $52.900 Required: 1. Prepare a complete statement of contents 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 Cash flows from investing activities Cash flows from financing activiti 0 (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 $ $ 7 ,98 85.91e 235,656 87, See 64,625 265, see 2175 42e.lee 122. eee 455,816 Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-ters notes payable Total current liabilities Long-term notes payable Total liabilities Equity Common stock, 55 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 489,18e $ 552. See 353, see FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 181.15e (191125) 153, 225 $109.375 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $19,125 (details in b. Sold equipment costing $88.875, with accumulated depreciation of $44.125. for $25,625 cash c. Purchased equipment costing $110.375 by paying $58,000 cash and signing a long-term note payable for the balance d. Borrowed $5,400 cash by signing a short-term note payable. e. Paid $57125 cash to reduce the long-term notes payable. issued 3.900 shares of common stock for $20 cash per share Declared and paid cash dividends of $52.900