Required Information [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 Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense. Net income Assets Cash FORTEN COMPANY Income Statement For Current Year Ended December 31 Accounts receivable Inventory. Prepaid expenses Total current assets FORTEN COMPANY Comparative Balance Sheets At December 31 Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable. Total liabilities $ 150,400 38,750 Equity Common shares, $5 par value Paid-in capital in excess of par, common shares Retained earnings Total liabilities and equity $ 672,500 303,000 369,500 189, 150 (23,125) 157,225 49,450 $ 107,775 Current Year $ 76,900 92,950 302,656 1,390 473,896 139,500 (45,625) $ 567,771 $ 71,141 71,400 142,541 189,750 64,500 170,980 $ 567,771 Prior Year $91,500 68,625 269,800 2,255 432,180 126,000 (55,000) $ 503,180 $ 141,675 76,350 218,025 168, 250 8 116,905 $ 503,180 Additional Information on Current-Year Transactions a. The loss on the cash sale of equipment was $23,125 (details in b). b. Sold equipment costing $100,875, with accumulated depreciation of $48,125, for $29,625 cash. c. Purchased equipment costing $114,375 by paying $66,000 cash and signing a long-term note payable for the balance. d. Paid $53,325 cash to reduce the long-term note payable. e. Issued 4,300 common shares for $20 cash per share. 1. Declared and paid cash dividends of $53,700.
Required Information [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 Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense. Net income Assets Cash FORTEN COMPANY Income Statement For Current Year Ended December 31 Accounts receivable Inventory. Prepaid expenses Total current assets FORTEN COMPANY Comparative Balance Sheets At December 31 Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable. Total liabilities $ 150,400 38,750 Equity Common shares, $5 par value Paid-in capital in excess of par, common shares Retained earnings Total liabilities and equity $ 672,500 303,000 369,500 189, 150 (23,125) 157,225 49,450 $ 107,775 Current Year $ 76,900 92,950 302,656 1,390 473,896 139,500 (45,625) $ 567,771 $ 71,141 71,400 142,541 189,750 64,500 170,980 $ 567,771 Prior Year $91,500 68,625 269,800 2,255 432,180 126,000 (55,000) $ 503,180 $ 141,675 76,350 218,025 168, 250 8 116,905 $ 503,180 Additional Information on Current-Year Transactions a. The loss on the cash sale of equipment was $23,125 (details in b). b. Sold equipment costing $100,875, with accumulated depreciation of $48,125, for $29,625 cash. c. Purchased equipment costing $114,375 by paying $66,000 cash and signing a long-term note payable for the balance. d. Paid $53,325 cash to reduce the long-term note payable. e. Issued 4,300 common shares for $20 cash per share. 1. Declared and paid cash dividends of $53,700.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Need help with this answer, answers were wrong and im not sure how to do this, will upvote if right answers!!
Transcribed Image Text:Required:
Prepare a complete statement of cash flows using a spreadsheet using the Indirect method. (Enter all amounts as positive values.)
Balance sheet-debit
Cash
Accounts receivable
Inventory
Prepaid expenses
Equipment
Balance sheet-credit
Accumulated depreciation-Equipment
Accounts payable
Long-term notes payable
Common stock, $5 par value
Paid-in capital in excess of par value, common stock
Retained earnings
Statement of cash flows
Operating activities
Investing activities
Financing activities
FORTEN COMPANY
Spreadsheet for Statement of Cash Flows
For Current Year Ended December 31
Non-cash investing and financing activities
Purchase of equipment financed by long-term notes payable
December 31,
Prior Year
$
$
Answer is not complete.
$
$
91,500
68,625
269,800
2,255
126,000
558,180
55,000
141,675
76,350
168,250
0
116,905
558,180
S
Analysis of Changes
Debit
Credit
14,800 X
92,950 X
$ 107,550 $
0
December 31,
Current Year
S
S
S
76,900
181,575
238,475
0
![Required Information
[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
Operating expenses (excluding depreciation)
Depreciation expense
Other gains (losses)
Loss on sale of equipment
Income before taxes
Income taxes expense
Net income
Assets
Cash
FORTEN COMPANY
Income Statement
For Current Year Ended December 31
Accounts receivable
Inventory
Prepaid expenses
Total current assets
$ 150,400
38,750
FORTEN COMPANY
Comparative Balance Sheets
At December 31
Equipment
Accumulated depreciation-Equipment
Total assets
Liabilities and Equity
Accounts payable
Long-term notes payable
Total liabilities
Equity
Common shares, $5 par value
Paid-in capital in excess of par, common shares
Retained earnings
Total liabilities and equity
$ 672,500
303,000
369,500
189,150
(23,125)
157,225
49,450
$ 107,775
e. Issued 4,300 common shares for $20 cash per share.
1. Declared and paid cash dividends of $53,700.
Current Year
$ 76,900
92,950
302,656
1,390
473,896
139,500
(45,625)
$ 567,771
$ 71,141
71,400
142,541
189,750
64,500
170,980
$ 567,771
Prior Year
$91,500
68,625
269,800
2,255
432,180
126,000
(55,000)
$ 503,180
$ 141,675
76,350
218,025
168,250
8
116,905
$ 503,180
Additional Information on Current-Year Transactions
a. The loss on the cash sale of equipment was $23,125 (details in b).
b. Sold equipment costing $100,875, with accumulated depreciation of $48,125, for $29,625 cash.
c. Purchased equipment costing $114,375 by paying $66,000 cash and signing a long-term note payable for the balance.
d. Paid $53,325 cash to reduce the long-term note payable.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F73bec75a-76bc-4068-8ade-f7b89e4f66a3%2F7b469589-1f84-49c8-9cb0-c4aac7216ad5%2Fuyhmqe_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[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
Operating expenses (excluding depreciation)
Depreciation expense
Other gains (losses)
Loss on sale of equipment
Income before taxes
Income taxes expense
Net income
Assets
Cash
FORTEN COMPANY
Income Statement
For Current Year Ended December 31
Accounts receivable
Inventory
Prepaid expenses
Total current assets
$ 150,400
38,750
FORTEN COMPANY
Comparative Balance Sheets
At December 31
Equipment
Accumulated depreciation-Equipment
Total assets
Liabilities and Equity
Accounts payable
Long-term notes payable
Total liabilities
Equity
Common shares, $5 par value
Paid-in capital in excess of par, common shares
Retained earnings
Total liabilities and equity
$ 672,500
303,000
369,500
189,150
(23,125)
157,225
49,450
$ 107,775
e. Issued 4,300 common shares for $20 cash per share.
1. Declared and paid cash dividends of $53,700.
Current Year
$ 76,900
92,950
302,656
1,390
473,896
139,500
(45,625)
$ 567,771
$ 71,141
71,400
142,541
189,750
64,500
170,980
$ 567,771
Prior Year
$91,500
68,625
269,800
2,255
432,180
126,000
(55,000)
$ 503,180
$ 141,675
76,350
218,025
168,250
8
116,905
$ 503,180
Additional Information on Current-Year Transactions
a. The loss on the cash sale of equipment was $23,125 (details in b).
b. Sold equipment costing $100,875, with accumulated depreciation of $48,125, for $29,625 cash.
c. Purchased equipment costing $114,375 by paying $66,000 cash and signing a long-term note payable for the balance.
d. Paid $53,325 cash to reduce the long-term note payable.
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