2 Use the following information for the Problems below Forten Company, a merchandiser, recently completed its calendar.year 2017 oper ations. 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. (4) all debits to Accounts Payable reflect cash payments for inventory, and (S) Other Expenises are paid in advance and are initially debited to Prepaid Expenses. The company's income statement and balance sheets follaw 30 points FORTEN COMPANY Comparat ive Balance Sheets December 31, 2017 and 2016 eBock Ask Print Peferences 2017 Assets Cash accounts receivable Inventory Prepaid expenses Total current assets Equipnent Accun. depreciat ion-Equpsent Total assets Liabilities and Equity Accounts payable Short-tere notes payable Total current 1iabilties Long-tern hotes payable Tot al 1iabiiities Equity Common stock, 5 par value $49,800 65,810 275,656 73,500 50, 625 251, 800 1,875 377, 800 108, 00 46, 030 92,516 157,500 513,391 $439, 80 53,141 114,675 10,8006,000 63,141 120, 675 128,241 169,425 62,750 150,250 Paid-in capital In excess of par, conmon stock 37,500 Retained earnings Tot al 1fabilities and equity 165,000 120,125 513,39 439,800 2 EN COHPA Incone Statenent For Year Ended Decenber 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $582,500 285,000 297,500 30 points Depreciation expense s 20,750 132,400 153,150 Other expenses Other gains (losses) B ock Aci Print ofer ence (5,125) Loss on sale of equipsent Incone before taxes Incone taxes expense Net income 24,250 114,975 Aceitional Information on Year 2017 Transactions a. The loss on the cash sale of equipment was $5.125 (details 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 $30000 cash and signing a long term note payable for the balance d. Borrowed $4.000 cash by signing a short-term note payable e. Paid $50,125 cash to reduce the long-term notes payable f. Issued 2,500 shares af common stock for $20 cash per share g Declared and paid cash dividends of $50,100 Problem 16-4AA Indirect: Cash flows spreadsheet LO P1, P2, P3, P4 hapter l HIG 2 Required infor mation Requlred: 30 points Prepare a complete statement of cash flows using a spreadsheet report ts amounts as poshtive values.) operating activities using the indtrect method (Enter all Spreadsheet for Statement of Cash Flowa For Year Ended December 31, 2017 e Book Analysis of Changes ask r 31, 2016 r 31, 2017 Balance sheet-debit 49.800 Cash Accounts receivable Inventory Prepaid expenses Equipment 73,500 50,625 251,800 1,875 108,000 485,800 Print Pefe re nces 40,800 Balance sheet-credit Accumulated depreciation-Equipment Accounts payable Short-term notes payable Long-term notes payable Common stock$5 par value Paid-in capital in excess of parvalue. common stock Retained eanings 46,000 114,075 6.000 48,750 150,250 120.125 485,800 Statement of cash flo Prey 2 of 2 Next 2 Required infor mation 485.800 0 Statement of cash flows 30 points Operating activities Increase in aocounts receivable Increase in inventory Decrease in prepaid expenses Decrease in accounts payable Depreciation expense Loss on sale of equipment (15.185) (23,580) eBook 81,534) 20,750 5.125 Ask 40,900 Investing activities Print 11.625 Receipt from sale of equipment Payment to purchase equipment Cash paid for inventory (30,000) (18,375) References Financing activities Bomowed on short-term note Borroveed on long-term note Issued common sto ck for cash Payment of cash dividends (50.125 50,000 (50.100) Non cash investing and financing activities Purchase of equipment financed by long-term note payable (138.405) 22,525