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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. Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income Assets Cash FORTEN COMPANY Income statement For Current Year Ended December 31 Accounts receivable Inventory Prepaid expenses Total current assets $ 135,400 23,750 FORTEN COMPANY Comparative Balance Sheets December 31 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 $ 597,500 288,000 309,500 159,150 (8,125) 142,225 28,450 $ 113,775 Current Year d. Pald $47,325 cash to reduce the long-term notes payable. e. Issued 2,800 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,700. $ 54,400 70,310 280,156 1,280 406,146 154,500 (38,125) $ 522,521 $ 56,141 74,400 130,541 167,250 42,000 182,730 $ 522,521 Prior Year $ 76,500 53,625 254,800 2,005 386,930 111,000 (47,500) $ 450,430 $ 119,175 58,350 177,525 153,250 0 119,655 $ 450,430 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $8,125 (detalls in b). b. Sold equipment costing $55,875, with accumulated depreciation of $33,125, for $14,625 cash. c. Purchased equipment costing $99,375 by paying $36,000 cash and signing a long-term notes payable for the balance Required: 4 Pronaro a completo ctatomont of cach floue neinn the indirort mathod for the currant voar

Forten Company's current year income statement, comparattve balance sheets, and additional informaton follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Recenvable 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. Additional Information on Current Year Transections a. The loss on the cash sale of equipment was $8,125 (detalls in b) b. Sold equipment costing $55,875, with accumulated depreciation of $33,125, for $14,625 cash c. Purchased equipment costing $99,375 by paying $36,000 cash and signing a long-term notes payable for the balance d. Paid $47,325 cash to reduce the long-term notes payable e. Issued 2,800 shares of common stock for $20 cash per share. t. Declared and paid cash dividends of $50,700 Required

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