U Required information Use the following information for the Problems below. [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 Petor Year $23.500 50,625 251,00 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accu depreciation Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-ters notes payable Total liabilities $ 49,800 65,010 275,656 1.250 392,516 157,500 36,625) $513,391 377,800 105.000 (66.000 $ 439,000 5 114.675 $ 53,141 10,000 63.141 65,000 128,141 120,675 169,425 157,500 (36,625 $ 513,391 1e8,eee (46, 000) $.439,800 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 6,600 120,675 48,750 169,425 158,250 162,750 37,500 185,00 $ 523,391 120, 125 $ 439,800 $ 582,5ee 285,000 297.500 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 20,750 Other expenses 132,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 153, 150 15.125 139, 225 24,250 $ 114,975 Check my w Income taxes expense Net Income 29 250 $ 114,975 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 $50125 cash to reduce the long-term notes payable f.issued 2.500 shares of common stock for $20 cash per share g. Deciared and paid cash dividends of $50,100 Problem 12-3A Indirect: Statement of cash flows LO A1, P2, P3 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.)
