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 Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets $67,900 85,500 83,890 293,656 62,625 263,800 1.330 2.135 446,776 145,500 42,625 414,060 120,000 52,000 Equipment Accum. depreciation-Equipment 549,651 482,060 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 $65,141 132,675 13,600 78,741 59,000 137,741 8,400 141,075 60,750 201, 825 186,750 49,500 175,660 162,250 117,985 549,651 482,060 Total liabilities and equity FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales 642,500 297,000 345,500 Cost of goods sold Gross profit Operating expenses Depreciation expense other expenses S32,750 144,400 177,150 Other gains (losses) Loss on sale of equipment (17,125) 151,225 41,050 Income before taxes Income taxes expense 110,175 Net income Additional Information on Year 2017 Transactions a. The loss on the cash sale of equipment was $17,125 (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 $52,500. 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 sign.) FORTEN COMPANY Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: 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 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.) ORTEN COM Spreadsheet for Statement of Cash Flows For Year Ended December 31, 2017 Analysis of Changes December 31, Debit Credit December 31 2017 Balance sheet debit 67,900 Cash 85,500 Accounts receivable 62,625 Inventony 263,800 Prepaid expenses Equipment 2,135 120,000 534,060 67,900 Balance sheetcredit 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 52,000 132,675 8,400 60,750 162,250 117,985 Retained ea 534,060 Statement of cash flows Operating activities Investing activities Financing activities Non cash investing and financing activities Purchase of equipment financed by long- term note payable 0 S 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.) 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 0 Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year 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 activities according to the direct method. (Amounts to be deducted should be indicated with a minus sign.) GOLDEN CORPORATI Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year