90.2K

Verified Solution

Link Copied!

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. Additional Information on Current Yoar Transactions a. The loss on the cash sale of equipment was $23,125 (details in b ). b. Sold equipment costing $100.875, with accumulated depreclation of $48,125, for $29,625 cash. c. Purctiased equipment costing $114,375 by paying $66,000 cosh and signing a long-term notes payable for the balance. d. Paid $53,325 cash to reciuce the long-term notes payable. e. Issued 4,300 shates of comimon stock for $20 cosh per share. Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $23,125 (details in b). b. Sold equipment costing $100,875, with accumulated depreciation of $48,125, for $29,625 cash. c. Purchased equipment costing $114,375 by paying $66,000 cash and signing a long-term notes payable for the balance. d. Paid $53,325 cash to reduce the long-term notes payable. e. Issued 4,300 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $53,700. Required: 1. Prepare a complete statement of cash flows using the indirect method for the current yeat. Note: Amounts to be deducted should be indicated with a minus sign

Answer & Explanation Solved by verified expert

See Answer