Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets FORTEN COMPANY Comparative Balance Sheets December 31 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 Additional Information on Current Year Transactions Current Year Prior Year $ 54,400 70,310 280,156 1,280 406,146 154,500 (38,125) $ 522,521 $ 56,141 74,400 130,541 $ 76,500 53,625 254,800 2,005 386,930 111,000 (47,500) $ 450,430 d. Paid $47,325 cash to reduce the long-term notes payable. e. Issued 2,800 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,700. $ 119,175 58,350 177,525 167,250 42,000 182,730 119,655 $ 522,521 $ 450,430 153,250 a. The loss on the cash sale of equipment was $8,125 (details in b). b. Sold equipment costing $55,875, with accumulated depreciation of $33,125, for $14,625 cash. c. Purchased equipment costing $99,375 by paying $36,000 cash and signing a long-term notes payable for the balance. 0 Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year. Note: Amounts to be deducted should be indicated with a minus sign.
Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets FORTEN COMPANY Comparative Balance Sheets December 31 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 Additional Information on Current Year Transactions Current Year Prior Year $ 54,400 70,310 280,156 1,280 406,146 154,500 (38,125) $ 522,521 $ 56,141 74,400 130,541 $ 76,500 53,625 254,800 2,005 386,930 111,000 (47,500) $ 450,430 d. Paid $47,325 cash to reduce the long-term notes payable. e. Issued 2,800 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,700. $ 119,175 58,350 177,525 167,250 42,000 182,730 119,655 $ 522,521 $ 450,430 153,250 a. The loss on the cash sale of equipment was $8,125 (details in b). b. Sold equipment costing $55,875, with accumulated depreciation of $33,125, for $14,625 cash. c. Purchased equipment costing $99,375 by paying $36,000 cash and signing a long-term notes payable for the balance. 0 Required: 1. Prepare a complete statement of cash flows using the indirect method for the current year. Note: Amounts to be deducted should be indicated with a minus sign.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
pleas answer do not image .
![Assets
Cash
Accounts receivable
Inventory
Prepaid expenses
Total current assets
Equipment
Accumulated depreciation-Equipment
Total assets
FORTEN COMPANY
Comparative Balance Sheets
December 31
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
Additional Information on Current Year Transactions
Current Year Prior Year
$ 54,400
70,310
280,156
1,280
406,146
154,500
(38,125)
$ 522,521
$ 56,141
74,400
130,541
167,250
42,000
182,730
$ 522,521
d. Paid $47,325 cash to reduce the long-term notes payable.
e. Issued 2,800 shares of common stock for $20 cash per share.
f. Declared and paid cash dividends of $50,700.
$ 76,500
53,625
254,800
2,005
386,930
111,000
(47,500)
$ 450,430
$ 119,175
58,350
177,525
153,250
0
119,655
$ 450,430
a. The loss on the cash sale of equipment was $8,125 (details in b).
b. Sold equipment costing $55,875, with accumulated depreciation of $33,125, for $14,625 cash.
c. Purchased equipment costing $99,375 by paying $36,000 cash and signing a long-term notes payable for the
balance.
Required:
1. Prepare a complete statement of cash flows using the indirect method for the current year.
Note: Amounts to be deducted should be indicated with a minus sign.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4919c674-3453-4a4a-9801-20e6bddf35e7%2F870d3142-211a-4e7a-8c1e-7fb1cfe429ae%2Fia1w22t_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assets
Cash
Accounts receivable
Inventory
Prepaid expenses
Total current assets
Equipment
Accumulated depreciation-Equipment
Total assets
FORTEN COMPANY
Comparative Balance Sheets
December 31
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
Additional Information on Current Year Transactions
Current Year Prior Year
$ 54,400
70,310
280,156
1,280
406,146
154,500
(38,125)
$ 522,521
$ 56,141
74,400
130,541
167,250
42,000
182,730
$ 522,521
d. Paid $47,325 cash to reduce the long-term notes payable.
e. Issued 2,800 shares of common stock for $20 cash per share.
f. Declared and paid cash dividends of $50,700.
$ 76,500
53,625
254,800
2,005
386,930
111,000
(47,500)
$ 450,430
$ 119,175
58,350
177,525
153,250
0
119,655
$ 450,430
a. The loss on the cash sale of equipment was $8,125 (details in b).
b. Sold equipment costing $55,875, with accumulated depreciation of $33,125, for $14,625 cash.
c. Purchased equipment costing $99,375 by paying $36,000 cash and signing a long-term notes payable for the
balance.
Required:
1. Prepare a complete statement of cash flows using the indirect method for the current year.
Note: Amounts to be deducted should be indicated with a minus sign.
![[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.
Sales
Cost of goods sold
Gross profit
FORTEN COMPANY
Income Statement
For Current Year Ended December 31
Operating expenses (excluding depreciation) $ 135,400
23,750
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
Total assets
Equipment
Accumulated depreciation-Equipment
FORTEN COMPANY
Comparative Balance Sheets
December 31
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
$ 597,500
288,000
309,500
159,150
(8,125)
142,225
28,450
$ 113,775
Current Year Prior Year
$ 54,400
70,310
280, 156
1,280
406,146
154,500
(38,125)
$ 522,521
$ 56,141
74,400
130,541
167,250
42,000
182,730
© 533 521
$ 76,500
53,625
254,800
2,005
386,930
111,000
(47,500)
$ 450,430
$ 119,175
58,350
177,525
153,250
119,655
0
J AWO 430](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4919c674-3453-4a4a-9801-20e6bddf35e7%2F870d3142-211a-4e7a-8c1e-7fb1cfe429ae%2Fmnde8n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[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.
Sales
Cost of goods sold
Gross profit
FORTEN COMPANY
Income Statement
For Current Year Ended December 31
Operating expenses (excluding depreciation) $ 135,400
23,750
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
Total assets
Equipment
Accumulated depreciation-Equipment
FORTEN COMPANY
Comparative Balance Sheets
December 31
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
$ 597,500
288,000
309,500
159,150
(8,125)
142,225
28,450
$ 113,775
Current Year Prior Year
$ 54,400
70,310
280, 156
1,280
406,146
154,500
(38,125)
$ 522,521
$ 56,141
74,400
130,541
167,250
42,000
182,730
© 533 521
$ 76,500
53,625
254,800
2,005
386,930
111,000
(47,500)
$ 450,430
$ 119,175
58,350
177,525
153,250
119,655
0
J AWO 430
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