9 Required information [The following information applies to the questions displayed below.] 11.12 points Skipped Forten Company, a merchandiser, recently completed its calendar-year 2017 operations. 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 (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company's income statement and balance sheets follow. eBook FORTEN COMPANY Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 Print $ 87,500 64,625 265,800 2,175 References $ 70,900 86,910 296,656 1,350 455,816 143,500 (43,625) $555, 691 420, 100 122,000 (53,000) $489, 100 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 67, 141 14, 200 81,341 58,000 139, 341 $135,675 8,800 144,475 62,750 207,225 190, 750 51,500 174,100 $555, 691 164, 250 0 117,625 $489, 100 9 $652,500 299,000 353,500 11.12 points FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 34,750 Other expenses 146,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income Skipped 181, 150 (19, 125) 153, 225 43,850 $109,375 eBook Print Additional Information on Year 2017 Transactions References a. Net income was $109,375. b. Accounts receivable increased. C. Inventory increased. d. Prepaid expenses decreased. e. Accounts payable decreased. f. Depreciation expense was $34,750. g. Sold equipment costing $88,875, with accumulated depreciation of $44,125, for $25,625 cash. This yielded a loss of $19,125. h. Purchased equipment costing $110,375 by paying $58,000 cash and (i.) by signing a long-term note payable for the balance. i. Borrowed $5,400 cash by signing a short-term note payable. j. Paid $57,125 cash to reduce the long-term notes payable. k. Issued 3,900 shares of common stock for $20 cash per share. I. Declared and paid cash dividends of $52,900. Required: Prepare a complete statement of cash flows using a spreadsheet; report its operating activities using the indirect method. (Enter all amounts as positive values.) 11.12 points FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Year Ended December 31, 2017 Analysis of Changes December 31, 2016 Debit Credit Skipped December 31, 2017 Balance sheet-debit Cash $ $ 70,900 eBook 87,500 64,625 Accounts receivable Inventory Prepaid expenses Equipment 265,800 2,175 Print 122,000 542,100 $ $ 70,900 References $ 53,000 135,675 8.800 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 par value, common stock Retained earnings 62,750 164,250 0 117,625 542,100 $ $ 0 Statement of cash flows Operating activities eBook Print Investing activities References Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term note payable $ 0 $ 0