Use the following information for the Problems below. $($Algo$)$

Skip to question

$[$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.

FORTEN COMPANY

Income Statement

For Current Year Ended December $31$

Sales $ $647,500$

Cost of goods sold $298,000$

Gross profit $349,500$

Operating expenses $($excluding depreciation$)$ $ $145,400$

Depreciation expense $33,750179,150$

Other gains $($losses$)$

Loss on sale of equipment $(18,125)$

Income before taxes $152,225$

Income taxes expense $42,450$

Net income $ $109,775$

FORTEN COMPANY

Comparative Balance Sheets

December $31$

Current Year Prior Year

Assets

Cash $ $69,400$ $ $86,500$

Accounts receivable $85,40063,625$

Inventory $295,156264,800$

Prepaid expenses $1,3402,155$

Total current assets $451,296417,080$

Equipment $144,500121,000$

Accumulated depreciation$$Equipment $(43,125)(52,500)$

Total assets $ $552,671$ $ $485,580$

Liabilities and Equity

Accounts payable $ $66,141$ $ $134,175$

Long$-$term notes payable $72,40070,350$

Total liabilities $138,541204,525$

Equity

Common stock, $$5$ par value $182,250163,250$

Paid$-$in capital in excess of par, common stock $57,0000$

Retained earnings $174,880117,805$

Total liabilities and equity $ $552,671$ $ $485,580$

Additional Information on Current Year Transactions

The loss on the cash sale of equipment was $$18,125($details in b$).$

Sold equipment costing $$85,875,$ with accumulated depreciation of $$43,125,$ for $$24,625$ cash.

Purchased equipment costing $$109,375$ by paying $$56,000$ cash and signing a long$-$term notes payable for the balance.

Paid $$51,325$ cash to reduce the long$-$term notes payable.

Issued $3,800$ shares of common stock for $$20$ cash per share.

Declared and paid cash dividends of $$52,700.$

Problem $12-3$A $($Algo$)$ Indirect: Statement of cash flows LO A$1,$ P$2,$ P$3$

Required:

$1.$ Prepare a complete statement of cash flows using the indirect method for the current year.

Note: Amounts to be deducted should be indicated with a minus sign.

Prev Question $6$ of $6$ Total $6$ of $6$ Visit question mapThis is the last question in the assignment. To submit, use Alt $+$ S$.$ To access other questions, proceed to the question map button.Next