Do the following Current Year Transactions:

 Required: Prepare a complete statement of cash flows using a spreadsheet using the indirect method. (Enter all amounts as positive values.)

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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 $ 49,800 65,810 275,656 1,250 392,516 157,500 (36,625) $513, 391 $ 73,500 50,625 251,800 1,875 377,800 108,000 (46 , 000) Total assets $439,800 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 $ 53,141 10,000 63,141 65, e00 128,141 $114,675 6,000 120,675 48, 750 169,425 162,750 37,500 185, 000 $513, 391 150,250 120, 125 Total liabilities and equity $439,800 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 $ 49,800 65,810 275,656 1,250 392,516 157,500 (36,625) $513, 391 $ 73,500 50,625 251,800 1,875 377,800 108,000 (46 , 000) Total assets $439,800 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 $ 53,141 10,000 63,141 65, e00 128,141 $114,675 6,000 120,675 48, 750 169,425 162,750 37,500 185, 000 $513, 391 150,250 120, 125 Total liabilities and equity $439,800

Answer rating: 100% (QA)

Cash flow statement Particulars Amount Amount CAsh flow from Operating activit... View the full answer