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 companys income statement and balance sheets follow.

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. FORTEN COMPANY Comparative Balance Sheets December 31, 2817 and 2e16 2817 2816 Assets 67,90e s 83,890 293,656 Cash 85,see 62,625 263,88e Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment 1,330 446,776 2,135 414.060 145,50e (42,625) $ 549,651 $ 482,86e 120,eee (52,eee) Total assets Liabilities and Equity Accounts payable Short-term notes payable $ 65,141 13,68e 132,675 8.480 78,741 Total current liabilities 141,e75 60,75e Long-term notes payable 59,08e 281,825 Total liabilities 137,741 Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings 186,750 49,see 162,25e 175,660 117,985 Total liabilities and equity 549,651 482,86e FORTEN COMPANY Income Statement For Year Ended December 31, 2817 S 642,508 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Other gains (losses) Loss on sale of equipment 297,08e 345, 58e $32.75e 144,480 177,150 (17,125) Income before taxes 151,225 41,ese $ 110.175 Income taxes expense Net income Additional Information on Year 2017 Transactions a. The loss on the cash sale of equipment was $17125 (details in b). b. Sold equipment costing $82.875, with accumulated depreciation of $42.125, for $23,625 cash. c Purchased equipment costing $108,375 by paying $54,000 cash and signing a long-term note payable for the balance. d. Borrowed $5.200 cash by signing a short-term note payable. e. Paid $56,125 cash to reduce the long-term notes payable. f. Issued 3,700 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $52,50o. Required: Prepare a complete statement of cash flows using a spreadsheet; report Its operating activitles using the Indlrect method (Enter all amounts as positive values.) Answer is not complete. FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Year Ended December 31, 2017 Analysis of Changes December 31, 2016 December 31, 2017 Debit Credit Balance sheet-debit 67,900 17.800 S Cash 85.500 21,265 29,850 Accounts receivable 62,825 83,890 203,800 293,050 Inventory Prapaid expenses 805 82875 2,135 1,330 Equipment 120,000 108,375 145,500 592.276 534,060 Balance sheet-credit 42,825 42.125S 67,534 32,750 Accumulated depreciation-Equipment 52,000 132,675 65,141 Accounts payable 5.200 Short-term notes payable 8,400 13.600 54.375 56,125 Long-term notes payable 60,750 59.000 24,500 49.500 Common stock, $5 par value 162,250 186,750 Paid-in capital in excess of par value, common stock 40,500 175,880 592,276 110,175 Retained earnings 117,985 534,080 52,500 Statament of cash flows Operating activities Net income 110,175 21.265 Increase in accounts receivable 29.358 Increase in inventory 805 Decrease in prepaid expenses 67,534 Decrease in accounts payable 32,750 Depreciation expense Loss on sale of equipment 17,125 Investing activities Receipt from sale of equipment 23,825 54,000 Payment to purchase equipment Financing activities 5.200 Borrowed on short-term note 58.125 Payment on long-tem ncte 74,000 Issued common stock for cash 52.500 Payment of cash dividends Non cash investing and financing activities Purchase of equipment financed by long-term note payable 54,375 641,460 713,435 Required: Prepare a complete statement of cash flows; report Its operating actlivitles according to the direct method (Amounts to be deducted should be Indicated witha minus sign.) FORTEN COMPANY Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities 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 vear Additional Information on Year 2017 Transactlons a. Purchased equipment for $49,500 cash. b. Issued 12,800 shares of common stock for $5 cash per share. c. Declared and paid $97,000 In cash dividends. Required: Prepare a complete statement of cash flows; report its cash flows from operating activitles according to the dlirect method. (Amounts to be deducted should be Indicated with a minus sign.) GOLDEN CORPORATION Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities 0 0 Cash flows from financing activities 0 Net increase (decrease) in cash Cash balance at Cash balance at end of year 0 of Required Informetion 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 recelpts 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 income statement and balance sheets follow. FORTEN COMPANY Comparative 8alance Sheets December 31, 2817 and 2e16 2817 2e16 Assets Cash 67,98e 83,89e 85,see Accounts receivable 62,625 263.800 Inventory Prepaid expenses 293,656 1,33e 2,135 Total current assets 414,068 446,776 Equipment 245,500 120,e0e Accum. depreciation-Equipment (42,625) (52,eee) Total assets S 549,651 $ 482,e60 Liabilities and Equity Accounts payable Short-tern notes payable 65,141 132,675 13,6ee 8,4ee Total current liabilities 78,741 141,e75 Long-tere notes payable Total liabilities 59, eee 6e.750 137,741 201,825 Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings 186,750 162,250 49.500 117,985 175,660 Total liabi1ities and equity $49,651 482,e6e FORTEN COMPANY Income Statement For Year Ended December 31, 2817 $ 642,see Sales Cost of goods sold 297,eee Gross profit Operating expenses Depreciation expense other expenses 345, 5ee s 32,75e 144,4ee 177,150 Other gains (losses) Loss on sale of equipment (17,125) Income before taxes 151,225 41, ese Income taxes expense $ 11e,175 Net income Additional Information on Year 2017 Transactions a. The loss on the cash sale of equipment was $17125 (detals in b. Sold equipment costing $82,875, with accumulated depreciation of $42.125, for $23,625 cash. c. Purchased equipment costing $108,375 by paying $54,000 cash and signing a long-term note payable for the balance. d. Borrowed $5.200 cash by signing a short-term note payable. e. Paid $56,125 cash to reduce the long-term notes payable. f. Issued 3,700 shares of common stock for $20 cash per share g. Declared and paid cash dividends of $52.500. Required: Prepare a complete statement of cash flows using a spreadsheet report its operating activities using the indtirect method (Enter all amounts as positive velues.) Answer is not complete. FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Year Ended December 31, 2017 Analysis of Changes December 31 2016 December 31, 2017 Debit Credit Balance sheet-debit s Cash 85.500 07.900 21.205 Accounts receivable 62025 83.800 29.850 Inventory 203.800 293.658 Prepaid expenses 2,135 805 1,330 Equipment 120,000 108.375 82.875 145.500 534.000 592.278 Balance sheet-oredit 42.125s 32.750 Accumulated depreciation--Equipment 52.000 42.625 132.075 Accounts payable 67.534 85.141 5.200 Short-term notes payable 8.400 13.600 50,125 80.750 54.375 9.000 Long-term notes payable 24.500 Common stock, $5 par value 162.250 188 750 Paid-in capital in excess of par value. common stock 49.500 49.500 Retained earnings 117.905 52.500 110.175 175.680 534,000 592.270 Statement of cash fiows Operating activities Net income 110.175 Increase in accounts receivable 21,265 20.856 Increase in inventory 805 Decrease in prepaid expenses Decrease in accounts payable 67.534 32.750 Depreciation expense 17.125 Loss on sale cf equipment Investing activites Receipt from sale of equipment 23.025 54.000 Payment to purchase equipment Financing activities Borrowed on short-term note 5.200 Payment on long-term note 56,125 issued common stock for cash 74.000 Payment of cash dividends 52.500 Non cash investing and financing activities Purchase of equipment financed by long-term note- payable 54.375 641.480 e85,835 Additional Information on Year 2017 Transactions a. Purchased equipment for $49,500 cash. b. Issued 12,800 shares of common stock for $5 cash per share. c. Declared and paid $97,000 in cash dividends. Required: Prepare a complete statement of cash flows; report its cash flows from operating activitiles according to the direct method. (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. GOLDEN CORPORATION Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities Cash received from customers Cash paid for inventory Cash paid for other expenses Cash paid for income taxes Net cash provided by operating activities 0 Cash paid for equipment Net cash used in investing activities 0 Cash flows from financing activities Cash received from issuing stock Cash paid for dividends Net cash useed in financing activities Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year olo Required Information Golden Corp., a merchandiser, recently completed its 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. (5) Other Expenses are all cash expenses, and (6) any change In Income Taxes Payable reflects the accrual and cash payment of taxes. The company's balance sheets and Income statement follow GOLDEN CORPORATION Comparative Balance Sheets December 31, 2017 and 2816 2817 2e16 Assets $ 115,Bee Cash 172,eee Accounts receivable 95,eee 79, eee Inventory 534,000 613,00e Total current assets 880, eee 728, 8e0 387,e00 (1e8,eee) Equipment Accum. depreciation-Equipment 356,58e (162,eee) $ 927,888 Total assets $1,074,50e Liabilities and Equity Accounts payable 103,eee 79,e00 Income taxes payable 36,e00 29,100 Total current liabilities 139, eee 108, 1ee Equity Common stock, $2 par value 688,e0e 284, eee 576,ee0 172, eee Paid-in capital in excess of par value, common stock Retained earnings 123.500 71,70e $1,074,500 927,880 Total liabilities and equity GOLDEN CORPORATION Incone Statoment For Year Ended December 31, 2e17 Sales $1,832,0e0 1,094,eee Cost of goods sold Gross profit Operating expenses Depreciation expense 738,000 $ 54,e00 Other expenses 502,eee 556,000 Income before taxes 182,000 33, 200 Income taxes expense S 148,800 Net income Additional Informetion on Year 2017 Transactions a. Purchased equipment for $49,500 cash. b. Issued 12,800 shares of common stock for $5 cash per share. c. Declared and pald $97000 In cash dividends. Required: Prepare a complete statement of cash flows: report Its cash flows from operating activities according to the direct method. (Amounts to be deducted should be indiceted with a minus sign.) Answer is not complete. GOLDEN CORPORATION Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities Cash received from customers Cash paid for inventory Cash paid for other expenses Cash paid for income taxes Net cash provided by operating activities Cash paid for equipment Net cash used in investing activities Cash flows from financing activities Cash received from issuing stock Cash paid for dividends Net cash used in financing activities 0 Nat increase (decrease) in cash C Cash balance at beginning of year Cash balance at end of year