Forten company statement of cash flows using the indirect method for the year ended 31
Cash flow from operating activities Amount
Net Income 112975
Adjustments to reconcile net income to net cash provided by operating activities
Adjustment for noncash effects
Depreciation expenses 25750
Loss on sale of equipment 10125
Change in operating assets & liabilities
Increase in accounts receivable -17695
Increase in inventory -26356
Decrease in prepaid expenses 735
Decrease in accounts payable -64034
Net cash flow provided by operating activities a) 41500
Cash Flow from Investing activities
New equipment purchased -40000
Equipment sold 16625
Net cash flow (used) by Investing activities b) -23375
Cash Flow from Financing activities
Cash dividends paid -51100
Common stock issued 60000
Long term notes paid -48125
Net cash flow used by Financing activities c) -39225
Net increase (decrease) in cash c=a+b+c -21100
Cash balance at December 31, prior year 78500
Cash balance at December 31, current year 57400
Schedule of noncash investing & financing activities
Issuance of long-term note for equipment ($101375-$40000)61375.
Essentially, income tax expense is a company's calculation of the taxes it actually pays during a particular accounting period. It usually appears on the penultimate line of the income statement, just before the net income calculation.
Learn more about Income tax here:-https://brainly.com/question/12143201
#SPJ4
