Assets                       Cash   $ 58,900         $ 79,500     Accounts receivable     74,830           56,625     Inventory     284,656           257,800     Prepaid expenses     1,270           2,015     Total current assets     419,656           395,940     Equipment     151,500           114,000     Accum. depreciation—Equipment     (39,625 )         (49,000 )   Total assets   $ 531,531         $ 460,940     Liabilities and Equity                       Accounts payable   $ 59,141         $ 123,675     Short-term notes payable     11,800           7,200     Total current liabilities     70,941           130,875     Long-term notes payable     62,000           54,750     Total liabilities     132,941           185,625     Equity                       Common stock, $5 par value     171,750           156,250     Paid-in capital in excess of par, common stock     46,500           0     Retained earnings     180,340           119,065     Total liabilities and equity   $ 531,531         $ 460,940          FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales       $ 612,500     Cost of goods sold         291,000     Gross profit         321,500     Operating expenses               Depreciation expense $ 26,750           Other expenses   138,400     165,150     Other gains (losses)               Loss on sale of equipment         (11,125 )   Income before taxes         145,225     Income taxes expense         32,650     Net income       $ 112,575         Additional Information on Current Year Transactions The loss on the cash sale of equipment was $11,125 (details in b). Sold equipment costing $64,875, with accumulated depreciation of $36,125, for $17,625 cash. Purchased equipment costing $102,375 by paying $42,000 cash and signing a long-term note payable for the balance. Borrowed $4,600 cash by signing a short-term note payable. Paid $53,125 cash to reduce the long-term notes payable. Issued 3,100 shares of common stock for $20 cash per share. Declared and paid cash dividends of $51,300.     I need help figuring the top portion of the promblem out.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assets                      
Cash   $ 58,900         $ 79,500    
Accounts receivable     74,830           56,625    
Inventory     284,656           257,800    
Prepaid expenses     1,270           2,015    
Total current assets     419,656           395,940    
Equipment     151,500           114,000    
Accum. depreciation—Equipment     (39,625 )         (49,000 )  
Total assets   $ 531,531         $ 460,940    
Liabilities and Equity                      
Accounts payable   $ 59,141         $ 123,675    
Short-term notes payable     11,800           7,200    
Total current liabilities     70,941           130,875    
Long-term notes payable     62,000           54,750    
Total liabilities     132,941           185,625    
Equity                      
Common stock, $5 par value     171,750           156,250    
Paid-in capital in excess of par, common stock     46,500           0    
Retained earnings     180,340           119,065    
Total liabilities and equity   $ 531,531         $ 460,940    
 

  

FORTEN COMPANY
Income Statement
For Current Year Ended December 31
Sales       $ 612,500    
Cost of goods sold         291,000    
Gross profit         321,500    
Operating expenses              
Depreciation expense $ 26,750          
Other expenses   138,400     165,150    
Other gains (losses)              
Loss on sale of equipment         (11,125 )  
Income before taxes         145,225    
Income taxes expense         32,650    
Net income       $ 112,575    
 

 
Additional Information on Current Year Transactions

  1. The loss on the cash sale of equipment was $11,125 (details in b).
  2. Sold equipment costing $64,875, with accumulated depreciation of $36,125, for $17,625 cash.
  3. Purchased equipment costing $102,375 by paying $42,000 cash and signing a long-term note payable for the balance.
  4. Borrowed $4,600 cash by signing a short-term note payable.
  5. Paid $53,125 cash to reduce the long-term notes payable.
  6. Issued 3,100 shares of common stock for $20 cash per share.
  7. Declared and paid cash dividends of $51,300.

 

 

I need help figuring the top portion of the promblem out.

**Forten Company: Statement of Cash Flows for Current Year Ended December 31**

This statement provides a detailed breakdown of cash flows from different activities during the fiscal year.

**Cash Flows from Operating Activities:**

1. **Cash Paid for Income Taxes:** [Amount not provided]
2. **Cash Paid for Inventory:** [Amount not provided]
3. **Cash Paid for Other Expenses:** [Amount not provided]
4. **Cash Received from Customers:** [Amount not provided]

- **Net Cash Provided by Operating Activities:** $0

**Cash Flows from Investing Activities:**

1. **Cash Paid for Equipment:** $(42,000)
2. **Cash Received from Sale of Equipment:** $17,625

- **Net Cash Used in Investing Activities:** $(24,375)

**Cash Flows from Financing Activities:**

1. **Cash Borrowed on Short-term Note:** $4,600
2. **Cash Paid for Dividends:** $(51,300)
3. **Cash Paid on Long-term Note:** $(53,125)
4. **Cash Received from Issuing Stock:** $62,000

- **Net Cash Used in Financing Activities:** $(37,825)

**Summary:**

- **Net Increase (Decrease) in Cash:** $(62,200)
- **Cash Balance at December 31 (Given):**
  - [Ending cash balance not shown in the image]

The data show how cash was used or generated through operating, investing, and financing activities over the year. Positive values represent cash inflows, while negative values represent cash outflows. The net changes in these activities contribute to the final cash position of the company at the year-end.
Transcribed Image Text:**Forten Company: Statement of Cash Flows for Current Year Ended December 31** This statement provides a detailed breakdown of cash flows from different activities during the fiscal year. **Cash Flows from Operating Activities:** 1. **Cash Paid for Income Taxes:** [Amount not provided] 2. **Cash Paid for Inventory:** [Amount not provided] 3. **Cash Paid for Other Expenses:** [Amount not provided] 4. **Cash Received from Customers:** [Amount not provided] - **Net Cash Provided by Operating Activities:** $0 **Cash Flows from Investing Activities:** 1. **Cash Paid for Equipment:** $(42,000) 2. **Cash Received from Sale of Equipment:** $17,625 - **Net Cash Used in Investing Activities:** $(24,375) **Cash Flows from Financing Activities:** 1. **Cash Borrowed on Short-term Note:** $4,600 2. **Cash Paid for Dividends:** $(51,300) 3. **Cash Paid on Long-term Note:** $(53,125) 4. **Cash Received from Issuing Stock:** $62,000 - **Net Cash Used in Financing Activities:** $(37,825) **Summary:** - **Net Increase (Decrease) in Cash:** $(62,200) - **Cash Balance at December 31 (Given):** - [Ending cash balance not shown in the image] The data show how cash was used or generated through operating, investing, and financing activities over the year. Positive values represent cash inflows, while negative values represent cash outflows. The net changes in these activities contribute to the final cash position of the company at the year-end.
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