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 Prior Year Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation Equipment Total assets Liabilities and Equity $ 78,400 94,460 304, 156 1,400 478416 138,500 K46,125 5570,791 $ 92,500 69,625 270,300 2.225 435,200 127.000 55.500) $ 506,700 478,416 138,500 (46,125) $570,791 435,200 127,000 (55,500) $ 506,700 Total current assets 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 $ 72,141 15,700 87,841 55,500 143,341 $ 143,175 9,800 152,975 67,750 220,725 169,250 191,250 66,089 170,200 $ 578,791 116,725 $ 506,700 $ 677,500 304,000 373,500 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 39,750 Other expenses 151,400 Other goins (losses) Loss on sale of equipment Income before taxes 191,150 (24, 125) 158, 225 $ 677,500 384,000 373, see For Current Tear tngea vecember Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 39,750 Other expenses 151,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 191,150 (24,125) 158,225 50,850 $ 107,375 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $24.125 (details in b). b. Sold equipment costing $103,875, with accumulated depreciation of $49,125, for $30.625 cash. c. Purchased equipment costing $115,375 by paying $68,000 cash and signing a long-term note payable for the balance. d. Borrowed $5.900 cash by signing a short-term note payable e. Paid $59,625 cash to reduce the long-term notes payable f. Issued 4,400 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $53,900. Problem 12-4AA 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 Debit Credit December 31, Current Year Balance sheet debit Cash $ $ 78.400 Accounts receivable Inventory 92,500 69 625 270.800 2.275 127 000 562.200 Prepaid expenses Equipment 5 78.400 Balance sheet-credh Accumulated depreciation Equipment $ 55,500 $ 55,500 143,175 ce bibel til Accumulated depreciation-Equipment Accounts payable Short-term notes payable Long-term notes payable Common stock, $5 par value Paid-in capital in excess of par value, common stock Retained earnings 9,800 67,750 169,250 0 116,725 562,200 $ 0 Statement of cash flows Operating activities Investing activities Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term note payable 0 $ 0