[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 Incone Statenent For Current Year Ended December 31 Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Connon stock, $5 par value FORTEN COMPANY Comparative Balance Sheets December 31 Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Additional Information on Current Year Transactions $ 132,400 20,750 G $582,500 285,000 297,500 153,150 (5,125) 139,225 24,250 $ 114,975 Current Year Prior Year $ 73,500 50,625 $ 49,800 65,810 275,656 1,250 251,800 1,875 392,516 157,500 (36,625) $ 513,391 $ 53,141 75,000 128,141 162,750 37,500 185,000 $ 513,391 d. Pald $46,125 cash to reduce the long-term notes payable. e. Issued 2,500 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,100. 377,800 108,000 (46,000) $ 439,800 $ 114,675 54,750 169,425 150,250 Show Transcribed Text e 120,125 $ 439,800 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $5,125 (detalls in b). b. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash. c. Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term notes payable for the balance. Required: Prepare a complete statement of cash flows using a spreadsheet using the Indirect method. Note: Enter all amounts as positive values.

[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 Incone Statenent For Current Year Ended December 31 Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities Equity Connon stock, $5 par value FORTEN COMPANY Comparative Balance Sheets December 31 Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity Additional Information on Current Year Transactions $ 132,400 20,750 G $582,500 285,000 297,500 153,150 (5,125) 139,225 24,250 $ 114,975 Current Year Prior Year $ 73,500 50,625 $ 49,800 65,810 275,656 1,250 251,800 1,875 392,516 157,500 (36,625) $ 513,391 $ 53,141 75,000 128,141 162,750 37,500 185,000 $ 513,391 d. Pald $46,125 cash to reduce the long-term notes payable. e. Issued 2,500 shares of common stock for $20 cash per share. f. Declared and paid cash dividends of $50,100. 377,800 108,000 (46,000) $ 439,800 $ 114,675 54,750 169,425 150,250 Show Transcribed Text e 120,125 $ 439,800 Additional Information on Current Year Transactions a. The loss on the cash sale of equipment was $5,125 (detalls in b). b. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash. c. Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term notes payable for the balance. Required: Prepare a complete statement of cash flows using a spreadsheet using the Indirect method. Note: Enter all amounts as positive values.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 13MC: Which of the following accounts are used when recording the sales entry of a sale on credit? A....

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