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sales $ 607,500 cost of goods sold 290,000 gross profit 317,500 operating expenses (excluding depreciation) $ 137,400 depreciation expense 25,750 163,150 other gains (losses) loss on sale of equipment (10,125) income before taxes 144,225 income taxes expense 31,250 net income $ 112,975

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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

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