Answer Happy

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. FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales $ 592,500 Cost of goods sold 287,000 Gross profit 305,500 Operating expenses (excluding depreciation) $ 134,400 Depreciation expense 22,750 157,150 Other gains (losses) Loss on sale of equipment (7,125) Income before taxes 141,225 27,050 Income taxes expense Net income $ 114,175 FORTEN COMPANY Comparative Balance Sheets December 31 Current Year Prior Year Assets Cash $52,900 $75,500 Accounts receivable. 68,810 52,625 Inventory 278,656 253,800 Prepaid expenses 1,270 1,995 Total current assets 401,636 383,920 Equipment. 155,500 110,000 Accumulated depreciation-Equipment (37,625) (47,000) Total assets $519,511 $ 446,920 Liabilities and Equity Accounts payable $55,141 $ 117,675 57,150 Long-term notes payable 74,600 Total liabilities 129,741 174,825 Equity Common stock, $5 par value 165,750 152,250 40,500 0 Paid-in capital in excess of par, common stock Retained earnings 183,520 119,845 Total liabilities and equity $519,511 $ 446,920 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $7,125 (details in b). b. Sold equipment costing $52,875, with accumulated depreciation of $32,125, for $13,625 cash. c. Purchased equipment costing $98,375 by paying $34,000 cash and signing a long-term notes payable for the balance. d. Paid $46,925 cash to reduce the long-term notes payable. e. Issued 2,700 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,500. Required: Prepare a complete statement of cash flows using a spreadsheet using the indirect method. (Enter all amounts as positive values.) FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Current Year Ended December 31 December 31, Prior Year Analysis of Changes Debit December 31, Current Year Credit Balance sheet-debit Cash $ 75,500 $ Accounts receivable 52,625 Inventory 253,800 Prepaid expenses. 1,995 Equipment 110,000 $ 493,920 $ Balance sheet-credit Accumulated depreciation Equipment 47,000 Accounts payable 117,675 Long-term notes payable. 57,150 Common stock, $5 par value 152,250 Paid-in capital in excess of par value, common stock 0 Retained earnings 119,845 493,920 Statement of cash flows Operating activities Investing activities Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term notes payable $ $ $ os 0 $ 52,900 52,900