Check my w Required Information Forten Company, a merchandiser, recently completed its calendar-year 2017 operations. For the year. () 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 FORTEN COMPANY Comparative Balance Sheets December 31, 2017 and 2016 2817 2816 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment 57,40 s 73, 320 283,156 1,268 415.136 78, see 55,625 256, 8ee 1,995 392.928 213,000 (48,500) 252,s (39,125) Total assets 457,420 s 528,511 $ Liabilities and Equity Accounts payable Short-term notes payable Total current 1iabilities Long-term notes payable Total 1iabilities Equity Comon stock, $5 par value: Paid-in capital in excess of pary common stock Retained earnings 58,141 11,5ee 69,641 62,58e 132,141 122,175 7.80e 129,175 53,758 182,925 272,75e 42,58e 181,12e 155,258 119,245 s 528,511 s457,420 Total liabilities and equity FORTEN COMPANY Income Statement For Year Ended December 31, 2017 s 687,5ee 298.a00 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses other gains (losses) Loss on sale of equipment Income before taxes Incone taxes expenser 317,5ee $ 25,758 137.400 163,150 (2e, 125) 344,225 31,258 $ 112,975 Net incomes Additional Information on Year 2017 Transactions a. The loss on the cash sale of equipment was $10.125 (details in b b. Soid equipment costing $61875, with accumulated depreciation of $35,125, for $16.625 cash c Purchased equipment costing $101375 by paying $40,000 cash and signing a long-term note payable for the balance. d. Borrowed $4,500 cash by signing a short-term note payable e. Paid $52,625 cash to reduce the long-term notes payable. t Issued 3.000 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $51100 Required: Prepare a complete statement of cash flows; report its operating activities according to the direct method. (Amounts be deducted should be indicated with a minus sign.) Fook FORTEN COMPANY Statement of Cash Flows For Year Ended December 31, 2017 rint Cash flows from operating activities rences S 0 Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year
