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. FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) $ 152,400 40,750 Depreciation expense Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets. FORTEN COMPANY Comparative Balance Sheets December 31 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 d. Paid $54,125 cash to reduce the long-term notes payable. e. Issued 4,500 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $54,100. Required: Prepare a complete statement of cash flows using the direct method. Note: Amounts to be deducted should be indicated with a minus sign. $ 682,500 305,000 377,500 193,150 (25,125) 159,225 52,250 $ 106,975 Current Year Prior Year $ 93,500 $ 79,900 95,970 305,656 70,625 271,800 2,295 438,220 128,000 (56,000) $ 510,220 FORTEN COMPANY Statement of Cash Flows For Current Year Ended December 31 Cash flows from operating activities 1,410 482,936 137,500 (46,625) $ 573,811 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $25,125 (details in b). b. Sold equipment costing $106,875, with accumulated depreciation of $50,125, for $31,625 cash. c. Purchased equipment costing $116,375 by paying $70,000 cash and signing a long-term notes payable for the balance. $ 73,141 71,000 144,141 Problem 12-5AB (Algo) Direct: Statement of cash flows LO P5 $ 144,675 78,750 223,425 192,750 170,250 67,500 0 169,420 116,545 $ 573,811 $ 510,220