Chegg Expert, Please help with the following I'm getting some asnwers incorrectly on the chart. Thank you in advance!
Forten Company, a merchandiser, recently completed its calendar-year 2013 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 Prepald Expenses. The company's balance sheets and Income statement follow. 2012 FORTEN COMPANY Comparative Balance Sheets December 31, 2013 and 2012 2013 Assets Cash $ 34,709 Accounts receivable 67,225 Merchandise inventory 272,656 Prepaid expenses 1,260 Equipment 145.075 Accum. depreciation-Equipment (35,950) $ 63,500 52.625 247,800 1.675 103,000 (43,000) Total assets $484.975 $425,600 Llabilities and Equity Accounts payable Short-term notes payable Long-term notes payable Common stock. $5 par value Pald-in capital in excess of par, common stock Retained earnings $ 59.775 6,600 36,525 154,750 27.000 $ 108,650 4,300 34,500 145.750 0 200,325 132,400 Total liabilities and equity $ 484,975 $425,600 FORTEN COMPANY FORTEN COMPANY Income Statement For Year Ended December 31, 2013 592,500 $ Sales 289,000 Cost of goods sold 303,500 Gross profit Operating expenses Depreciation expense Other expenses $18,300 140,250 158,550 Other galns (losses) Loss on sale of equipment (4075) Income before taxes Income taxes expense 140,875 26,750 Net Income $ 114.125 Additional Information on Year 2013 Transactions a. The loss on the cash sale of equipment was $4.075 (details in b). Sold equipment costing $43,675, with accumulated depreciation of $25,350. for b. $14,250 cash. c. Purchased equipment costing $85.750 by paying $43,000 cash and signing a long- term note payable for the balance. d. Borrowed $2,300 cash by signing a short-term note payable. e. Pald $40,725 cash to reduce the long-term notes payable. f. Issued 1,800 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $46,200. I Required: 1. Prepare a complete statement of cash flows, report its operating activities using the Indirect method. (Amounts to be deducted should be Indicated with a minus slgn.) FORTEN COMPANY Statement of Cash Flows For Year Ended December 31, 2013 Cash flows from operating activities Net Income S 114,125 Adjustments to reconcile net income to net cash provided by operations: Depreciation expense 18,300 Loss on disposal of equipment 24,856 X Accounts payable decrease (48,875) Inventory increase 24,856 Prepaid expense decrease 415 Accounts receivable increase (14,600) 119,077 Net cash provided by operating activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment 14,250 43,000 57,250 Net cash used in investing activities Cash flows from financing activities: Cash borrowed on short-term note Cash paid on long term note Cash received from issuing stock Cash paid for dividends OC 2.300 (40,725) 36,000 (46,200) $ Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year (48,625) 127.702 63,500 191,202 S
