This is a two part problem, please help!
Forten Company's current year income statement comparative balance sheets, and additional information follow. For the year (1) alt sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, 3) purchases of inventory are on credit. (4) all debits to Accounts Payable reflect cash payments for inventory, and (51 Other Expenses are paid in advance and are initially debited to Prepaid Expenses FORTEN CORONY Comparative Balance Sheets December 31 Current Year Assets Cash $6.900 Accounts receivable 77,850 58,525 Inventory 255,500 Prepaid expenses 3.290 Total current assets 26.95 4019 Equipment 145,500 116,00 Accur. depreciation Equipment Total assets $537,571 5457.0 Liabilities and Equity Accounts payable 561,145 Short-tere notes payable 12,400 Total current liabilities 134,25 Long-ters notes payable 61.00 55.750 Total Tibilities 134,543 293,35 Equity Comon stock, 35 par value -374.75e Pald-in capital in excess of par, common stock 49,500 Retained earnings 275.750 138, Total abilities and equity $57,571 $57, FORTEN COMPANY Income Statement For rent Year Ended December Sales $622,50 DOLL 8 0 $.622,500 293,000 329,500 TORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 28,750 Other expenses 140,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 169, 150 (13,125) 147,225 35,45e $ 111,775 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 note payable for the balance d. Borrowed $4,800 cash by signing a short-term note payable. e. Paid $54125 cash to reduce the long-term notes payable. f. Issued 3,300 shares of common stock for $20 cash per share. 9. Declared and paid cash dividends of $51,700. Redirect 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 Not income $ 111,175 Adjustments to reconcile net income to net cash provided by operations Cash received from issuing stock $ 111.175 Cash flows from investing activities Cash received from sale of equipment 0 Cash flows from financing activities $ 111,175 Cash flows from investing activities Cash received from sale of equipment 0 Cash flows from financing activities: $ 0 111,175 Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year $ 111,175 7 Required information Required: Prepare a complete statement of cash flows using a spreadsheet using the indirect method (Enter all amounts as positive values FORTEN COMPANY Spreadsheet for Statement of Cash Flow For Current Year Ended December 31 Analysis of Changes December 31, Prior Year Debit Credit aped December 31 Current Year 00 $ $ 61.900 Balance sheet debit Cash Accounts receivable Inventory Prepaid expenses Equipment 81,500 58.625 259,800 2,055 110,000 517.980 S $ 61.900 $ Balance sheet credit Accumulated depreciation Equipment Accounts payable Short-term notes payable Long-term notes payable Common stock, $5 par value Paid-in capital in excess of par value, common stock Retained earnings 50,000 120,675 7.600 56,750 158,250 0 118,705 4. Required information Statement of cash flows Operating activities Part 2 of 3 10 des Investing activities Financing activities Non cash investing and financing activities Purchase of equipment financed by long term note payable S
