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Required information Use the following information for the Problems below. (Algo) {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 5627,500 294,000 333,500 PORTEN COMPANY Income Statement For current Year Ended December 31 Sales cost of goods sold Croon profit Operating expenses (excluding depreciation) 5141,400 Depreciation expense 29,250 Other gains (lossen) Loss on sale of equipment Income before taxes Income taxes expense Net income 171,150 (14.125) 148,225 36,850 $111,375 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year $ 63,400 79,360 289, 156 1,300 433,216 148,500 (41,125) $540,591 $ 82,500 59,625 260,800 2,075 405,000 117,000 (50,500) $471,500 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 $ 62,141 12,700 74,841 60,500 135,341 $128,175 7,800 135,975 57,750 193,725 176,250 51,000 178,000 $540,591 159, 250 0 118,525 $471,500 ront Your Transactions Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $14,125 (details in b). b. Sold equipment costing $73,875, with accumulated depreciation of $39,125, for $20,625 cash. c. Purchased equipment costing $105,375 by paying $48,000 cash and signing a long-term note payable for the balance. d. Borrowed $4,900 cash by signing a short-term note payable. e. Paid $54,625 cash to reduce the long-term notes payable. f. Issued 3,400 shares of common stock for $20 cash per share. 9. Declared and paid cash dividends of $51,900. Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deduct 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 Cash flows from investing activities Cash flows from financing activities: Net increase (decrease) in cash Cash balance at December 31, prior year Cash balance at December 31, current year

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