3 Part 2 of 2 10 points eBook Check my work ! Required information [The following...

Transcribed Image Text:

3 Part 2 of 2 10 points eBook Check my work ! 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, and (4) all debits to Accounts Payable reflect cash payments for inventory. FORTEN COMPANY Income Statement For Current Year Ended December 31 Print Sales $ 672,500 References Cost of goods sold 303,000 Gross profit Operating expenses (excluding depreciation) $ 150,400 Depreciation expense Other gains (losses) 369,500 38,750 189,150 Loss on sale of equipment Income before taxes (23,125) 157,225 Income taxes expense Net income Assets Cash Accounts receivable Inventory 49,450 $ 107,775 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 76,900 92,950 302,656 $ 91,500 68,625 269,800 3 Part 2 of 2 Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable 10 points eBook 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 Print Additional Information on Current Year Transactions 1,390 2,255 473,896 432,180 139,500 126,000 (45,625) (55,000) $ 567,771 $ 503,180 $ 71,141 $ 141,675 71,400 142,541 76,350 218,025 189,750 168,250 64,500 0 170,980 116,905 $ 567,771 $ 503,180 References a. The loss on the cash sale of equipment was $23,125 (details in b). b. Sold equipment costing $100,875, with accumulated depreciation of $48,125, for $29,625 cash. c. Purchased equipment costing $114,375 by paying $66,000 cash and signing a long-term notes payable for the balance. d. Paid $53,325 cash to reduce the long-term notes payable. e. Issued 4,300 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $53,700. Required: Prepare a complete statement of cash flows using a spreadsheet using the indirect method. Note: Enter all amounts as positive values. Check my work 3 ! Part 2 of 2 10 points Required information eBook Balance sheet-debit Cash Accounts receivable Print Inventory References Prepaid expenses Equipment FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Check my work Analysis of Changes December 31, Prior Year Debit Credit December 31, Current Year $ 91,500 68,625 269,800 2,255 126,000 558,180 Balance sheet-credit Accumulated depreciation-Equipment Accounts payable 55,000 141,675 Long-term notes payable 76,350 Common stock, $5 par value 168,250 Paid-in capital in excess of par value, common stock 0 Retained earnings 116,905 558,180 Statement of cash flows $ 76,900 3 Part 2 of 2 ! Required information Operating activities 10 points eBook Print Investing activities References Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term notes payable Check my work 3 Part 2 of 2 10 points eBook Check my work ! 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, and (4) all debits to Accounts Payable reflect cash payments for inventory. FORTEN COMPANY Income Statement For Current Year Ended December 31 Print Sales $ 672,500 References Cost of goods sold 303,000 Gross profit Operating expenses (excluding depreciation) $ 150,400 Depreciation expense Other gains (losses) 369,500 38,750 189,150 Loss on sale of equipment Income before taxes (23,125) 157,225 Income taxes expense Net income Assets Cash Accounts receivable Inventory 49,450 $ 107,775 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 76,900 92,950 302,656 $ 91,500 68,625 269,800 3 Part 2 of 2 Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable 10 points eBook 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 Print Additional Information on Current Year Transactions 1,390 2,255 473,896 432,180 139,500 126,000 (45,625) (55,000) $ 567,771 $ 503,180 $ 71,141 $ 141,675 71,400 142,541 76,350 218,025 189,750 168,250 64,500 0 170,980 116,905 $ 567,771 $ 503,180 References a. The loss on the cash sale of equipment was $23,125 (details in b). b. Sold equipment costing $100,875, with accumulated depreciation of $48,125, for $29,625 cash. c. Purchased equipment costing $114,375 by paying $66,000 cash and signing a long-term notes payable for the balance. d. Paid $53,325 cash to reduce the long-term notes payable. e. Issued 4,300 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $53,700. Required: Prepare a complete statement of cash flows using a spreadsheet using the indirect method. Note: Enter all amounts as positive values. Check my work 3 ! Part 2 of 2 10 points Required information eBook Balance sheet-debit Cash Accounts receivable Print Inventory References Prepaid expenses Equipment FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 Check my work Analysis of Changes December 31, Prior Year Debit Credit December 31, Current Year $ 91,500 68,625 269,800 2,255 126,000 558,180 Balance sheet-credit Accumulated depreciation-Equipment Accounts payable 55,000 141,675 Long-term notes payable 76,350 Common stock, $5 par value 168,250 Paid-in capital in excess of par value, common stock 0 Retained earnings 116,905 558,180 Statement of cash flows $ 76,900 3 Part 2 of 2 ! Required information Operating activities 10 points eBook Print Investing activities References Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term notes payable Check my work