Help Save & Exit Submit Check my work 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, () 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 Prior Tear Current Tear Assets Cash $ 64,900 80,870 290,656 1.310 437,736 147,500 41.625) $543,611 $ 83,500 60,625 261.800 2,095 408,020 110,000 (51.000) $475,020 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 Rouitv $ 63,141 13,000 76,141 60,000 136,141 $129,675 8.000 137,675 58.750 196,425 2 of 2 3 Help Save & Exit Submit Check my work $63,141 12.000 $129,675 3.000 Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total liabilities Equity Common stock 55 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity 60.000 136,141 58,259 mts 160,250 177,750 52,500 127.220 $543,611 eBook $475,020 Print eferences $632,500 295,000 337,500 PORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 30,750 other expenses 142,400 Other gains (loses) LOs on sale of equipment Income before taxes Income taxes expense Net income 173, 150 The ke them, sity's ccounting 149,225 38,250 $110,975 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $15,125 (details in bj. b. Sold equipment costing $76,875, with accumulated depreciation of $40,125, for $21,625 cash B 1103 12 Tulube Maps P5A Saved Help Save & Submit Additional Information on Current Year Transactions Check my work a. The loss on the cash sale of equipment was $15,125 (details in bl. b. Sold equipment costing $76,875, with accumulated depreciation of $40,125, for $21,625 cash c. Purchased equipment costing $106,375 by paying $50,000 cash and signing a long-term note payable for the balance. d. Borrowed $5,000 cash by signing a short-term note payable. e. Paid $55,125 cash to reduce the long-term notes payable. f. Issued 3,500 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $52,100. Required: Prepare a complete statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.) FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Cash received from customers Cash paid for other expenses Cash paid for income taxes Cash paid for inventory