Problem 12-5AB Direct: Statement of cash flows LO P5

FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 66,400 82,380 292,156 1,320 442, 256 146,500 (42,125) $ 546,631 $ 84,500 61,625 262,800 2,115 411,040 119,000 (51,500) $ 478,540 Assets Cash 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 Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 64,141 13,300 77,441 59,500 136,941 $ 131,175 8,200 139, 375 59,750 199,125 179, 250 54,000 176,440 $ 546,631 161,250 0 118,165 $ 478,540 $ 637,500 296,000 341,500 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 31,750 Other expenses 143,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 175, 150 (16,125) 150,225 39,650 $ 110,575 Problem 12-5AB Direct: Statement of cash flows LO P5 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 s 0 Cash flows from investing activities 0 Cash flows from financing activities 0 s 0 Net increase (decrease) in cash Cash balance at December 31. prior year Cash balance at December 31, current year 84,500 84,500 s