Required information Use the following information for the Problems below. (Algo) [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 $592,500 Coat of goods sold i 287,000 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income Gross profit Operating expenses (excluding depreciation) $ 134,400 Depreciation expense 305,500 22,750. 157,150 (7,125) 141,225 27,050 $114,175 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity $52,900 $75,500 60,010 52,625 278,656 253,000 1,270 1,995 401,636 383,920 155,500 110,000 (37,625) (47,000) $519,511 446,920 Accounts payable $55,141 $117,675 Long-term notes payable 74,600 57,150 Total liabilities 129,741 174,825 Equity Common stock, $5 par value 165,750 152,250 Paid-in capital in excess of par, common stock 40,500 Retained earnings 183,520 119,045 Total liabilities and equity $519,511 $446,920 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $7125 (details in b b. Sold equipment costing $52,875, with accumulated depreciation of $32,125, for $13,625 cash. c. Purchased equipment costing $98,375 by paying $34,000 cash and signing a long-term notes payable for the balance. d. Paid $46,925 cash to reduce the long-term notes payable. e. Issued 2,700 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,500. Cash #52,900 $ 75,500 Accounts receivable 68,20 52,625 Inventory 278,656 253,000 Prepaid expens 1,370 3,995 total current t 401,636 383,920 155,500 110,000 (37,425) 147,000) Total assets 446,920 Liabilities and pity Accounts payable 55,14 Long-term hotes payable 14,600 57,150 Total liabilition Squity 129,741 174,825 Common stock, $5 par vel 265,750 152,250 183,530 446,920 said-in capital in ja Total liabilities and equity Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $7125 b. Sold equipment costing $52,875, with accumulated depreciation of $32,125, for $13,625 cash Purchased equipment costing $98.375 by paying $34,000 cash and signing a long-term notes payable for the balance. d. Paid $46,925 cash to reduce the long-terms notes payable e. Issued 2,700 shares of common stock for $20 cash per share Declared and paid cash dividends of $50,500 Problem 12-3A (Algo) Indirect: Statement of cash flows LO A1, P2, P3 Required: 1. Prepare a complete statement of cash flows using the indin indicated with a minus sign) FORTER COMPANir Fur Current Year Ended De Cash flows from operating cives Ads to moncle het income to net cash provided by operation Income statements not affecting ca Changes cut assets and cumetabis Cash Row from investing a Cash Deer 21, Cent current year (Amounts to be deducted should be