Use the following information for the Problems below. (Algo) [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 Sales Cost of goods sold Gross profit For Current Year Ended December 31 $ 587,500 286,000 301,500 $ 133,400 21,750 155,150 (6,125) Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 140,225 25,650 $ 114,575 FORTEN COMPANY Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable 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 Current Year Prior Year 67,310 277,156 $ 51,400 $ 74,500 51,625 252,800 1,300 2,025 397,166 380,950 156,500 109,000 (46,500) (37,125) $ 516,541 $ 443,450 $ 54,141 $ 116,175 74,800 128,941 164,250 39,000 55,950 172,125 151,250 0 184,350 $ 516,541 120,075 $ 443,450 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $6,125 (details in b). b. Sold equipment costing $49,875, with accumulated depreciation of $31,125, for $12,625 cash. c. Purchased equipment costing $97,375 by paying $32,000 cash and signing a long-term notes payable for the balance. d. Paid $46,525 cash to reduce the long-term notes payable. e. Issued 2,600 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,300. Problem 16-3A (Algo) 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.) Cash borrowed on short-term note Net cash provided by operating activities Cash flows from investing activities Cash paid for equipment Cash received from sale of equipment Loss on disposal of equipment Cash flows from financing activities: Cash received from issuing stock Cash paid for dividends Cash paid on long-term notes Net increase (decrease) in cash Cash balance at December 31. prior year 4,100 $ 45,200 (32,000) 12,625 (19,375) 52,000 50,300x 46,525 x 148,825 $ 174,650 74.500