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 Prior Year Current Year Assets Cash $ 73,5ee se,625 251,800 1,875 377,800 108,00e (46,000) $ 49,800 65,81e 275,656 1,250 392,516 157,5ee (36,625) $513, 391 Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets $ 439,880 Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total liabilities $ 53,141 10,000 63,141 65,000 128,141 $ 114,675 6,000 120,675 48,750 169,425 Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity 162,750 37,5ee 185,000 150, 25e 120,125 $513,391 $ 439,800 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales 582,see 285,eee 297,5ee Cost of goods sold Gross profit Operating expenses Depreciation expense 0ther expenses Other gains (losses) Loss on sale of equipment Incone before taxes Income taxes expense $ 20,750 132,40e 153,150 (5,125) 139,225 24,250 $ 114,975 Net income Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $5,125 (details in b). b. Sold equipment costing $46,875, with accumulated depreciation of $30125, for $11,625 cash c. Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term note payable for the balance. d. Borrowed $4,000 cash by signing a short-term note payable. e. Paid $50,125 cash to reduce the long-term notes payable f Issued 2,500 shares of common stock for $20 cash per share g. Declared and paid cash dividends of $50,100 Problem 16-4AA 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) Answer is not complete. FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Analysis of Changes December 31 Prior Year December 31 Current Year Debit Credit Balance sheet-debit Cash 23,700s 73.500 49.800 Accounts receivable 50,825 15,185 65.810 tnventory Prepaid expenses 23.856 251,800 275,656 625 1,875 1,250 Equipment 49,500 108,000 157,500 485 800 550,016 Balance sheet-credit Acoumulated depreciation-Equipment Accounts payable 40.000 9.375 36,825 114.075 61,534 53.141 Short-term notes payable 6,000 4,000 10.000 Long-term notes payable 48.750 18,250 85,000 Common stock, 55 par value 150,250 12.500 182,750 Paid-in capital in excess of par value, common stock 0 37.500 37,500 Ratained earnings 120,125 54.875 185,000 485 800 550.016 Statement of cash fows Operating activities Net income 114,975 Increase in ac0ounts receivable ,185 Increase in inventory 23.850 Decrease in prepaid expenses 625 Decrease in aceounts payable 61.534 Depreciation expense 20.750 Loss on sale of equipment 5,125 Investing activities Receipt from sale of equipmentt Payment to punchase equipment 11,025 30,000 Feancing activites Payment on short-term note 4,000 Borowed on long-term note issued common stock for eash 50,125 50.000 Payment of cash dividends 50.100 Non cash investing and Seancing activities Purchase of equpment inanced by long-term note paable 50,125 S 301,700 s s05.225