Use the following information for the Problems below. (Algo) The following information apples 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 twentory FORTEN COMPANY Income Statement For current Year Ended December 31 Sales $ 632,500 Cost of goods sold 295,000 Gross profit 337,500 Operating expenses (excluding depreciation) Depreciation expense 173,150 Other in (losses) LOSS on sale of equipment (15,125) Incone before taxes 149,225 Income taxes expense 18.250 Net Income $ 110,075 5 142,400 30,750 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash Accounts receivable Inventory Prepaid expenses Yotal current assets Louisent 564,100 07 290,656 1,310 437.73 14 583,500 60,625 261, 400.00 31 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depredation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Comon stock. $5 par value Paid in capital in excess of par, con stock Retained earnings Total liabilities and equity $ 64,900 80,878 290,656 1,310 437,736 147,500 (41,625) 554), 611 $ 83, see 60,625 261, 800 2,095 488,020 118,000 51,000) $475,020 $ 63,141 73,000 136,141 3 129,675 66,750 195,425 160,250 177,750 52,500 222,220 $ 543.631 118,345 $$75,00 Additional Information on Current Year Transactions 6. The loss on the cash sale of equipment was $15125 (details in ) b. Sold equipment costing $76,875, with accumulated depreciation of $40,125, for $21,625 cash c. Purchased equipment costing $106.375 by paying $50,000 cash and signing a long-term notes payable for the balance d. Pald $50,125 cash to reduce the long-term notes payable e issued 3,500 shares of common stock for $20 cash per share 1. Declared and pold cash dividends of $52.100, Problem 16-5AB (Algo) Direct: Statement of cash flows LO P5 Required: Prepare a complete statement of cash flows using the direct method (Amounts to be deducted should be Indicated with a minus sign.) FORTEN COMPANY Statement of Cash Flows For Current Year Ended Decemberat Cash flows from operating activities 3 O Cash flows from investing activities 0 Cash flows from financing activities For Current Year Ended December 31 Cash flows from operating activities S 0 Cash flows from investing activities 0 Cash flows from financing activities Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31. Current year