! Required information Use the following information for the Problems below. {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, (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 $. 75,400 $ 90,500 Accounts receivable 91,440 67,625 Inventory 301,156 268,800 Prepaid expenses 1,380 2,235 Total current assets 469,376 429, 160 Equipment 140,500 125,000 Accum. depreciation Equipment (45,125) (54,500) Total assets $ 564,751 $ 499,660 Liabilities and Equity Accounts payable $ 70,141 $140,125 Short-term notes payable 15 100 9,400 Total current liabilities 85,241 149,575 Long-term notes payable 56,500 65,250 Total liabilities 141,741 215,325 Equity Connon stock, 55 par value 188,250 167,250 Paid in capital in excess of par, common stock 63,000 Retained earnings 171,760 117,085 Total liabilities and equity 5 564,751 $ 499,660 @ FORTEN COMPANY Income Statement For Current Year Ended December 31 Dr. Al work Saved , rau capilan uxLES UT par LU SLULK Retained earnings Total liabilities and equity 171,760 $ 564,751 117,985 $ 499,660 5 667,580 302,000 365,58 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 37,750 Other expenses 149,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 187,150 (22,125) 156, 225 48,050 $ 108,175 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $22,125 (details in b). b. Sold equipment costing $97.875, with accumulated depreciation of $47125, for $28,625 cash c. Purchased equipment costing $113,375 by paying $64,000 cash and signing a long-term note payable for the balance d. Borrowed $5700 cash by signing a short term note payable e. Paid $58,625 cash to reduce the long-term notes payable. f. Issued 4,200 shares of common stock for $20 cash per share. 9. Declared and paid cash dividends of $53,500. Problem 12-3A Indirect: Statement of cash flows LO A1, P2, P3 Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year (Amounts to be deducted should be indicated with a minus sign.) $ 168,050 Net cash provided by operating activities Cash flows from investing activities Cash paid for equipment Cash received from sale of equipment Net cash used in investing activities Cash flows from financing activities Cash paid on long-term note Cash received from issuing stock Cash paid for dividends SO Net cash used in financing activities Net increase (decrease in cash Cash balance at December 31, prior year Cash balance at December 31, current year 0 168.050 $ IS 168,050 w