Course Hero * *Course Hero * Question 3 - Homework: Reportir X + X ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flearn.liberty.edu%252Fwebapps%252Fportal%252Fframeset.jsp%253Ftab_tab_group_id%253D_2_1%2526url%2530%25252Fwebapps... Q EX TP # M Homework: Reporting Cash Flows Problems Assignment i Saved Help Save & Exit Submit Check my work 3 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. Part 2 of 2 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales 662, 508 Cost of goods sold 301, 900 oint Gross profit 361, 500 Operating expenses (excluding depreciation) $ 148,480 Skipped Depreciation expense 36,750 185, 150 Other gains (losses) Loss on sale of equipment (21, 125) Income before taxes 155, 225 Income taxes expense 46, 650 Book Net income $ 108, 575 FORTEN COMPANY Print Comparative Balance Sheets December 31 Current Year Prior Year Assets References Cash 73,980 $ 89,500 Accounts receivable 89,930 66, 625 Inventory 299,656 267, 800 Prepaid expenses 1,378 2,215 Total current assets 464, 856 26, 140 Equipment 141, 580 124,090 Accumulated depreciation-Equipment (44, 625) (54, 090) Total assets $ 561,731 $ 496, 140 Liabilities and Equity Accounts payable $ 69, 141 $ 138, 675 Long-term notes payable 71,808 73,950 Total liabilities 140,941 212, 625 Equity Common stock, $5 par value 186,750 166, 250 Paid-in capital in excess of par, common stock 61, 580 Retained earnings 172,548 117,265 Total liabilities and equity $ 561,731 $ 496, 140 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $21,125 (details In b). b. Sold equipment costing $94,875, with accumulated depreciation of $46,125, for $27,625 cash. . Purchased equipment costing $112,375 by paying $62,000 cash and signing a long-term notes payable for the balance. d. Paid $52,525 cash to reduce the long-term notes payable. e. Issued 4,100 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $53,300. Required: Prepare a complete statement of cash flows using a spreadsheet using the Indirect method. (Enter all amounts as positive values.) FORTEN COMPANY