Answer Happy

42 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 Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gaine (losses) Loss on sale of equipment Income before taxes. Income taxes expense let income Assets Cash Accounts receivable Inventory $133,400 21,750 PORTER COMPANY Comparative Balance Sheets December 31 $ 587,500 284,000 301,500 155, 150 (6,125) 140,225 25,650 $ 114,575 Current Year Prior Year # $1,400 67,318 277,156 $ 74,500 51,625 252,800
Accounts receivable Inventory Prepaid expenses Total current assets 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 67,310 277,156 1,300 397,166 156,500 (37,125) $ 516,541 $ 54,141 74,800 128,941 51,625 252,800 2,025 380,950 109,000 (46,500) $ 443,450 $ 116,175 55,950 172,125 164,250 39,000 184,350 120,075 $ 516,541 $ 443,450 151,250 0 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $6,125 (details in b). b. Sold equipment costing $49,875, with accumulated depreciation of $31,125, for $12,625 cash. c. Purchased equipment costing $97,375 by paying $32,000 cash and signing a long-term notes payable for the balance. d. Paid $46,525 cash to reduce the long-term notes payable. e. Issued 2,600 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,300.
FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities Depreciation expense Loss on sale of equipment Increase in accounts payable Decrease in prepaid expenses Cash flows from investing activities Cash paid for equipment Cash received from sale of equipment Answer is not complete. Cash flows from financing activities Cash paid on long-term notes Cash received from issuing stock Cash paid for dividends ** Ⓡ › › › $ 15,685x 24,356 x 725 X (62,034) X (32,000) 12,625 (46,525) 52,000 (50,300) $ (21,268) (19,375)