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 theyear, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) allpurchases of Inventory are on credit, and (4) all debits to Accounts Payable reflect cash payments for Inventory.SalesCost of goods soldGross profitOperating expenses (excluding depreciation)Depreciation expenseother gains (losses)Loss on sale of equipmentIncome before taxesIncome taxes expenseNet incomeAssetsCashAccounts receivableInventoryFORTEN COMPANYIncome StatementFor Current Year Ended December 31Prepaid expensesTotal current assetsFORTEN COMPANYComparative Balance SheetsDecember 31EquipmentAccumulated depreciation-EquipmentTotal assetsLiabilities and EquityAccounts payableLong-term notes payableTotal liabilitiesEquityCommon stock, $5 par valuePaid-in capital in excess of par, common stockRetained earningsTotal liabilities and equity$ 132,40020, 750$ 582,500285,000297,500153,150(5,125)139, 22524, 250$ 114,975Current Year$ 49,80065,810275,6561,250392,516157,500(36,625)$ 513,391$53,14175,000128,141162,75037,500185,000$ 513,391Prior Year$ 73,50050, 625251,8001,875377,800108,000(46,000)$ 439,800$ 114,67554,750169,425150, 2500120, 125$ 439,800Additional Information on Current Year Transactionsa. 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.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.1. Declared and paid cash dividends of $50,100. Balance sheet-debitCashAccounts receivableInventoryPrepaid expensesEquipmentBalance sheet-creditAccumulated depreciation EquipmentAccounts payableLong-term notes payableCommon stock, $5 par valuePaid in capital in excess of par value, common stockRetained earningsStatement of cash flowsOperating activitiesDepreciation expenseLoss on sale of equipmentDecrease in prepaid expensesInvesting activitiesLoss on sale of equipmentPayment to purchase equipmentsprentahout for slebevel of cini FAMEFinancing activitiesPayment of cash dividendsPayment on long lean novesIssued common stock for cashNon cash investing and financing activities.Purchase of equem anced by the term notes parede✔10✔000IS$PINK YOU73,50050,625251,8001,875108,000485,80046,000114,67554,750150,2500120,125485,800S15,18523,85696,37530,12561,53446,12550,100114,9755,12562512.50023.700 €5Copert23,700 S62546,87566,37512,500✔37,500114,97520,750 S15,18523.856DECNINE 30Current Year50.1002$ 550,1003IS49,80065,810275,8561,250157,500550,01836,62553,14175,000162,750550.018

A cash flow statement is a type of financial statement that gives total information about all of the…

[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 Long-term notes payable Total liabilities FORTEN COMPANY Comparative Balance Sheets December 31 Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 132,400 20,750 $ 582,500 285,000 297,500 153,150 (5, 125) 139, 225 24,250 $ 114,975 Current Year Prior Year $ 49,800 65,810 275,656 1,250 392,516 157,500 (36,625) $513,391 $ 53,141 75,000 128,141 $ 73,500 50,625 251,800 1,875 377,800 108,000 (46,000) $ 439,800 $ 114,675 54,750 169,425 150, 250 0 162,750 37,500 185,000 120, $ 513,391 $ 439,800 ditional Information on Current Year Transactions The loss on the cash sale of equipment was $5,125 (detalls in b). Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash. Purchased equipment costing $96,375 by paying $30.000 cash and signing a long-term notes payable for the balar Pald $46,125 cash to reduce the long-term notes payable. Issued 2,500 shares of common stock for $20 cash per share. Declared and paid cash dividends of $50100

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q