! 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. $ 587,500 286,000 301,500 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding $ 133,400 depreciation) Depreciation expense 21,750 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 155, 150 (6,125) 140,225 25,650 $ 114,575 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $ 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 Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable 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 $ 54, 141 74,800 128,941 $ 116, 175 55,950 172, 125 164,250 39,000 184, 350 $ 516,541 151,250 0 120,075 $ 443,450 Additional Information on Current Year Transactions TULA LLULLILIES ailu UuLLV ?? ?? ? ?? ?????? Required information 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. (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 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: Required information Prepare a complete statement of cash tows using a spreaasneet using the indirect menoa. (Enter all amounts as positive vai FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 December 31, Prior Analysis of Changes Year Debit Credit December 31, Current Year Balance sheet-debit Cash $ $ 51,400 Accounts receivable Inventory Prepaid expenses Equipment 74,500 51,625 252,800 2,025 109,000 489,950 $ $ 51,400 $ 46,500 Balance sheet-credit Accumulated depreciation Equipment Accounts payable Long-term notes payable Common stock, $5 par value Paid-in capital in excess of par value, common stock Retained earnings 116,175 55,950 151,250 0 120,075 489,950 $ $ 0 Statement of cash flows Operating activities Investing activities Financing activities