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 For Current Year Ended December 31 Sales $ 587,500 Cost of goods sold 286,000 Gross profit 301,500 Operating expenses (excluding depreciation) $ 133,400 Depreciation expense 21.750 155,150 Other gains (losses) Loss on sale of equipment 6.125) Income before taxes 140,225 Income taxes expense 25.650 $ 114,575 Net Income FORTEN COMPANY Comparative Balance Sheets Net income $ 114,575 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 51,400 67,310 277,156 1,300 397,166 156,500 (37,125) $ 516,541 $ 74,500 51,625 252,800 2,025 380,950 109,000 (46,500 $ 443,450 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, 55 par value Paid-in capital in excess of par, common stock Retained earnings Total abilities and equity $ 54,141 74,800 128,941 $ 116,175 55,950 172, 125 164,250 39,000 184,350 $ 516,541 151, 250 0 120.075 $443,456 Additional Information on Current Year Transactions Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $6125 (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 16-4AA (Algo) Indirect: Cash flows spreadsheet LO P4 Problem 16-4AA (Algo) Indirect: Cash flows spreadsheet LO P4 Required: Prepare a complete statement of cash flows using a spreadsheet using the Indirect method (Enter all amounts as positive values.) FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Analysis of Changes December 31, Prior Year Debli Credit December 31, Current Year 51 400 $ Balance sheetdebit Cash Accounts receivable Inventory Prepaid expenses Equipment 74,500 51.625 252 800 2.025 109.000 489.950 $ 51 400 $ S Balance sheet credit Accumulated depreciation Equipment Accounts payable 46 500 116.175 55 9501 TO RE Required information $ $ 51,400 Cash Accounts receivable Inventory Prepaid expenses Equipment 74,5001 51,625 252,800 2,025 109,000 489,950 $ S 51,400 S Balance sheel-credit Accumulated depreciation Equipment Accounts payable Long-term notes payable Common stock 85 par value Paid-in capital in excess of par value, common stock Retained earnings 46,500 116,175 55,950 151,250 0 120.075 489,950 S 0 Statement of cash flows Operating activities RHIN Required information Operating activities Investing activities Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term notes payable