what am i missing ??
Required information [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 $ 64,900 $ 83,500 Accounts receivable 80, 870 60, 625 Inventory 290, 656 261, 800 Prepaid expenses 1,310 2,095 Total current assets 437, 736 408,020 Equipment 147,500 118,000 Accum. depreciation Equipment (41,625) (51, 000) Total assets $543,611 $475,020 Liabilities and Equity Accounts payable $ 63,141 $129, 675 Short-term notes payable 13,000 8,000 Total current liabilities 76,141 137,675 Long-term notes payable 60,000 58, 750 Total liabilities 136, 141 196,425 Equity Common stock, 55 par value 177,750 160, 250 Paid-in capital in excess of par, common stock 52,500 Retained earnings 177,220 118,345 Total liabilities and equity $543, 611 $475, 020 Required information 5632,500 295,000 337,500 FORTEN COMPANY Income Statenent For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 30,750 other expenses 142.400 Other gains (losses) Loss on sale of equipment Incone before taxes Income taxes expense Net Income 473,50 115, 125) 149,225 30, 250 $110,075 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $15,125 (details in ) b. Sold equipment costing $76,875, with accumulated depreciation of $40,125, for $21625 cash. c. Purchased equipment costing $106,375 by paying $50,000 cash and signing a long-term note payable for the balance. d. Borrowed $5,000 cash by signing a short-term note payable. e. Pald $55,125 cash to reduce the long term notes payable f. Issued 3,500 shares of common stock for $20 cash per share. 9. Declared and paid cash dividends of $52,100. FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Net income $ 110,975 Adjustments to reconcile net income to net cash provided by operations: Depreciation expense 30,750 Loss on disposal of equipment 15,125 Accounts receivable increase (20,245) Inventory increase (28,856) Prepaid expense decrease 785 Accounts payable increase (66,534) Cash borrowed on short-term note 5,000 Net cash used in operating activities Cash flows from investing activities Cash received from sale of equipment 21,625 Cash paid for equipment (50,000) $ 47,000 (28,375) Net cash used in investing activities Cash flows from financing activities: Cash received from issuing stock Notes payable long-term decrease Cash paid for dividends 70,000 (55,125) (52,100) Saved Required information Adjustments to reconcile net income to net cash provided by operations: Depreciation expense 30.750 Loss on disposal of equipment 15.125 Accounts receivable increase (20,245) Inventory increase (28,856) Prepaid expense decrease 785 Accounts payable increase (66,534) Cash borrowed on short-term note 5,000 Net cash used in operating activities Cash flows from investing activities Cash received from sale of equipment 21,625 Cash paid for equipment (50.000) $ 47,000 (28,375) Net cash used in investing activities Cash flows from financing activities: Cash received from issuing stock Notes payable long-term decrease Cash paid for dividends 70.000 (55,125) (52,100) $ Net cash provided by financing activities Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year (37,225) (18,600) 83,500 64,900 $ $
