FORTEN COMPANY Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Total current...

Transcribed Image Text:

FORTEN COMPANY Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets 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 Total liabilities and equity FORTEN COMPANY Income Statement For Current Year Ended December 31 $ 622,500 293,000 329,500 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense other expenses Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income $ 28,750 140,400 169,150 (13,125) 147,225 35,450 $ 111,775 Current Year Prior Year $ 61,900 77,850 $ 81,500 58,625 259,800 287,656 1,290 2,055 428,696 401,980 149,500 116,000 12,400 73,541 (40,625) $ 537,571 $ 61,141 (50,000) $ 467,980 $ 126,675 7,600 134,275 61,000 56,750 134,541 191,025 174,750 158,250 49,500 178,780 $ 537,571 118,705 $ 467,980 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $13,125 (details In b). b. Sold equipment costing $70,875, with accumulated depreciation of $38,125, for $19,625 cash. c. Purchased equipment costing $104,375 by paying $46,000 cash and signing a long-term note payable for the balance. d. Borrowed $4,800 cash by signing a short-term note payable. e. Paid $54,125 cash to reduce the long-term notes payable. f. Issued 3,300 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $51,700. FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: $ 0 Cash flows from investing activities Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year 0 0 $ 0 $ 0 FORTEN COMPANY Comparative Balance Sheets December 31 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets 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 Total liabilities and equity FORTEN COMPANY Income Statement For Current Year Ended December 31 $ 622,500 293,000 329,500 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense other expenses Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income $ 28,750 140,400 169,150 (13,125) 147,225 35,450 $ 111,775 Current Year Prior Year $ 61,900 77,850 $ 81,500 58,625 259,800 287,656 1,290 2,055 428,696 401,980 149,500 116,000 12,400 73,541 (40,625) $ 537,571 $ 61,141 (50,000) $ 467,980 $ 126,675 7,600 134,275 61,000 56,750 134,541 191,025 174,750 158,250 49,500 178,780 $ 537,571 118,705 $ 467,980 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $13,125 (details In b). b. Sold equipment costing $70,875, with accumulated depreciation of $38,125, for $19,625 cash. c. Purchased equipment costing $104,375 by paying $46,000 cash and signing a long-term note payable for the balance. d. Borrowed $4,800 cash by signing a short-term note payable. e. Paid $54,125 cash to reduce the long-term notes payable. f. Issued 3,300 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $51,700. FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: $ 0 Cash flows from investing activities Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year 0 0 $ 0 $ 0