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Required information (The following information applies to the questions displayed below.) Forten Companys current year inco$ 662,500 301,000 361,500 FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross p1. Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should

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Answer #1
Statement of Cash Flows - Indirect Method
Amount in $ Amount in $
Net income $          1,08,575
Cash flows from operating activities
Adjustments for:
Depreciation $             36,750
Loss on sale of Equipment $             21,125
(Increase) / Decrease in Account receivables $            -23,305
Inventory Decrease / (Increase) $            -31,856
Accounts payable Increase / ( Decrese) $            -69,534
Decrease in Prepaid Expenses $                   845
$            -65,975
Net cash from operating activities $             42,600
Cash flows from investing activities
Sale of Equipment $             27,625
Purchase of Equipment $            -62,000
Net cash used in investing activities $            -34,375
Cash flows from Financing activities
Issue of Common Stock $             82,000
Payment of long term note Payable $            -58,125
Dividend Paid $            -53,300
Short Term Not Payable $                5,600
Net cash used in financing activities $            -23,825
Net increase in cash and cash equivalents $            -15,600
Add :Cash and cash equivalents at beginning of period $             89,500
Cash and cash equivalents at end of period $             73,900
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