FORTEN COMPANY Income Statement For Current Year Ended December 31 $582,500 285.000 297,500 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 $ 20,750 132,400 153,150 (5,125) 139,225 24,250 $14,975 Net income FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets $ 49,800 65,810 275,656 1,250 $ 73,500 50,625 251,800 1,875 377,800 108,000 (46,000) $439,800 392,516 157.500 (36,625) $513-391 $ 53.141 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 10,000 63,141 65,000 128.141 $ 114,675 6,000 120,675 48.750 169,425 150.250 0 162.750 37.500 185,000 $513.291 120.125 $439,800 Additional Information 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, f. Issued 2,500 shares of common stock for $20 cash per shared g. Declared and paid cash dividends of $50,100. Page 605 Required 1. Prepare a complete statement of cash flows using the indirect method for the current year. Disclose any noncash investing and financing activities in a note, Check Cost from operating activities, $40.900 Problem 16-5AB Direct: Statement of cash flows @p5 Refer to Forten Company's financial statements and related information in Problem 16-3A. Required Prepare a complete statement of cash flows using the direct method. Disclose any noncash investing and financing activities in a note Check Condid M220