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.

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 Recelvable 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 Prepaid Expenses. The company's income statement and balance sheets follow FORTEN COMPANY Comparative Balance Sheets December 31, 2817 and 2816 2817 2816 Assets Cash 67,9ee 85,see Accounts receivable 83,89e 293,656 62,625 263,8ee Inventory Prepaid expenses 1,330 2,135 446,776 414,e6e 120,eee (52,eee) Total current assets Equipment 145, see Accum. depreciation-Equipment (42,625) Total assets 549,651 S 482,e6e Liabilities and Equity Accounts payable 132.675 65,141 13,6ee Short-term notes payable 8,4ee Total current 11abilities 78,741 141,e75 Long-ters notes payable 6e,75e 59,eee Total liabilities 137,741 281,825 Equity Common stock, $5 par value 186.75e 162,25e Paid-in capital in excess of par, common stock 49,see Retained earnings 175.660 117,985 $ 549,651 S Total liabilities and equity 482,e6e FORTEN COMPANY Income Statement For Year Ended December 31, 2817 Sales 642,see Cost of goods sold 297,eee Gross profit 345,5ee Operating expenses Depreciation expense $32,750 Other expenses 144,4ee 177,15e other gains (losses) Loss on sale of equipment (17,125 Income before taxes 151,225 Income taxes expense 41,ese $ 11e,175 Net income Additional Information on Year 2017 Transactions a. The loss on the cash sale of equipment was $17,125 (detalls in b b. Sold equlpment costing $82.875, with accumulated depreciation of $42125, 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 e. Pald $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. te payable by signing a short-tern Required: Prepare a complete statement of cash flows using a spreadsheet, report its operating activites using the indirect 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 Cash 85.500 67,900 17.000 21.205 Accounts receivable 62.625 83.890 29.850 Inventory 263.800 293.650 805 2.135 Prepaid expenses 1,330 108.375 82.875 Equipment 120,000 145,500 534.080 592.278 Balance sheet-credt 42.125 s 52.000 32.750 Accumulated depreciation-Equipment 42.025 67.534 Accounts payable 132.675 65.141 Short-term notes payable 8400 5.200 13,600 58.125 60,750 54,375 59,000 Long-term notes payable 24500 Common stook, $5 par value 182.250 188,750 40.500 49.500 Paid-in capital in excess of par value, common stocko 52.500 Retained earnings 117.905 110.175 175.680 534,080 592.278 Statement of cash flows Operating activities Net income 110.175 21.205 Increase in accounts receivable Increase in inventory 29.858 805 Decrease in prepaid expenses Decrease in accounts payable 87,534 Depreciation expense 32.750 17.125 Loss on sale of equipment Investing activites 23.625 Receipt from sale of equipment 54.000 Payment to purchase equipment Financing activities Borrowed on short-term note 5.200 Payment on long-term note 58,125 74,000 Issued common stock for cash Payment of cash dividends 52.500 Non cash investing and financing activities Purchase of equipment financed by long-term note- payable 54.375 841.480 713.435 Required: Prepare a complete statement of cash flows; report its operating activities according to the direct method. (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. FORTEN COMPANY 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 0 Net cash provided by operating activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment Net cash used in investing activities Cash flows from financing activities Cash received from issuing stock Cash paid for dividends 0 Cash borrowed on short-term note Cash paid on long-term note 0 Net cash used in financing activities Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year S 0