! Required information [The following information applies to the questions displayed below.] Forten Company's current year...

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! 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 Sales $ 587,500 Cost of goods sold 286,000 Gross profit Operating expenses (excluding depreciation) $ 133,400 Depreciation expense 301,500 21,750 155,150 Other gains (losses) Loss on sale of equipment Income before taxes (6,125) 140,225 Income taxes expense Net income Assets Cash Accounts receivable FORTEN COMPANY Comparative Balance Sheets December 31 Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable 25,650 $114,575 Current Year Prior Year $ 51,400 67,310 277,156 1,300 397,166 156,500 (37,125) $516,541 $74,500 51,625 252,800 2,025 380,950 109,000 (46,500) $ 443,450 Long-term notes payable Total liabilities Equity Connon stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Additional Information on Current Year Transactions $ 54,141 $116,175 74,800 55,950 128,941 172,125 164,250 151,250 39,000 0 184,358 120,075 $516,541 $ 443,450 a. The loss on the cash sale of equipment was $6,125 (details in b). b. Sold equipment costing $49,875, with accumulated depreciation of $31,125, for $12,625 cash. c. Purchased equipment costing $97,375 by paying $32,000 cash and signing a long-term notes payable for the balance. d. Paid $46,525 cash to reduce the long-term notes payable. e. Issued 2,600 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,300. Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Adjustments to reconcile net income to net cash provided by operations Income statement items not affecting cash Changes in current assets and current liabilities 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 $ ! 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 Sales $ 587,500 Cost of goods sold 286,000 Gross profit Operating expenses (excluding depreciation) $ 133,400 Depreciation expense 301,500 21,750 155,150 Other gains (losses) Loss on sale of equipment Income before taxes (6,125) 140,225 Income taxes expense Net income Assets Cash Accounts receivable FORTEN COMPANY Comparative Balance Sheets December 31 Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable 25,650 $114,575 Current Year Prior Year $ 51,400 67,310 277,156 1,300 397,166 156,500 (37,125) $516,541 $74,500 51,625 252,800 2,025 380,950 109,000 (46,500) $ 443,450 Long-term notes payable Total liabilities Equity Connon stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Additional Information on Current Year Transactions $ 54,141 $116,175 74,800 55,950 128,941 172,125 164,250 151,250 39,000 0 184,358 120,075 $516,541 $ 443,450 a. The loss on the cash sale of equipment was $6,125 (details in b). b. Sold equipment costing $49,875, with accumulated depreciation of $31,125, for $12,625 cash. c. Purchased equipment costing $97,375 by paying $32,000 cash and signing a long-term notes payable for the balance. d. Paid $46,525 cash to reduce the long-term notes payable. e. Issued 2,600 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,300. Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year. Note: Amounts to be deducted should be indicated with a minus sign. Cash flows from operating activities FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Adjustments to reconcile net income to net cash provided by operations Income statement items not affecting cash Changes in current assets and current liabilities 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 $