Question

Share * Draw Design Layout References E E 12 X, X A A Aav po E A-D-A- Mailings Review View Help Table Design Layout ORO S AL AaBbCcDc AaBbCcDc AaBb C AaBbccc AaB 1 Normal 1 No Spac... Heading 1 Heading 2 Title Find c Replace Select Dictate Sensitivity 2 E Styles Editing Voice Sensitivity Font Paragraph FORTEN COMPANY Comparative Balance Sheets December 31 Additional Information on Current Year Transactions Current Or Year Year a. The loss on the cash sale of equipment was $18,125 (details in ) b. Sold equipment costing $85,875, with accumulated depreciation of S43,125, for $24,625 $ 69,400 85.400 295, 156 1,340 451,296 144.500 (43,125) $ 552,671 $ 36,500 63,625 264,800 2,155 417,080 121.000 (52,500) 9485,580 Purchased equipment costing $109,375 by paying $56,000 cash and signing a long-term note payable for the balance. d. Borrowed $5,300 cash by signing a short term note payable Paid $56,625 cash to reduce the long-term notes payable. f. Issued 3,800 shares of common stock for $20 cash per share. & Declared and paid cash dividends of $52,700. Required: 1. Prepare a complete statement of cash flows using the Indirect method for the current year (Amounts to be deducted should be indicated with a minus sign.) Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipent by depreciation Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term nates payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par. COLOR Stock Retained earnings Total liabilities and equity $ 66,141 13.900 80, 041 58,500 138,541 $134, 175 8.600 3142,775 61,750 204,525 163,250 182,250 57.000 174.BBD $ 552, 671 117,805 $485,500 PORTE COMPANY Income Statement Far Current Year Ended December 31 5647,500 Cost of goods sold 298,000 349,500 Operating expenses Depreciation expenses 33,750 Other expenas 145,400 179,150 Other gains Clousea) Los on sale of equipment (18,125) Income before taxes 152,225 Income taxes expense 42, 450 Set income $109,775 D. Focus 2 te -- + 55- 279 words 12 Type here to search o ao e o 6:09 PM 2/18/2020 15

Answer 1

$ 109,775 $ $ 33,750 18,125 FORTEN COMPANY Statement of Cash Flows For Current year ended December 31 Cash flows from operating activities Net Income Addustments to reconcile net income to net cash flow from operating activities income statement items not effecting cash Depreciation Loss on Sale of Equipment Changes in Current operating assets and liabilities Increse in accounts receivables Increase in Inventory Decrease in Prepaid Expenses Decrease in Accounts payable Decrease in Short - Term notes payable Net cash flow From operating activities Cash flows from investing activities: Cash provided by sale of Equipment Cash used to Purchase of Equipment Net cash flow from investing activities Cash flows from Financing activities: Cash used for dividends Cash used for Long Term Note payable cash provided for Issueance of Common stock Net cash flow from financing activities Net Increase (decrease) in cash Cash balance at prior year-end cash balance at current year end $ (21,775) $ (30,356) $ 815 $ 68,034) $ 5,300 $ 47,600 $ 24,625 $(109.375) $ (84,750) $ (52,700) $ (3,250) $ 76,000 $ 20,050 $ (17,100) $ 86,500 $ 69,400