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 2017 2016 Assets 66,400 82,380 292,156 1,320 442,256 146,500 (42,125) Cash 84,500 61,625 262,800 2,115 411,040 119,000 (51,500) Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment $546,631 $478,540 Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable 64,141 13,300 $131,175 8,200 139,375 59,750 199,125 77,441 59,500 136,941 Total liabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings 184,750 48,500 176,440 161,250 C 118,165 Total liabilities and equity $546,631 $478,540 FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales $637,500 296,000 341,500 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses 31,750 143,400 175,150 Other gains (losses) Loss on sale of equipment (16,125) Income before taxes 150,225 39,650 Income taxes expense $110,575 Net income Additional Information on Year 2017 Transactions a. Net income was $110,575 b. Accounts receivable increased. c. Inventory increased. d. Prepaid expenses decreased. e. Accounts payable decreased. f. Depreciation expense was $31,750. g. Sold equipment costing $79,875, with accumulated depreciation of $41,12 5, for $22,625 cash. This yielded a loss of $16,125 h. Purchased equipment costing $107,375 by paying $52,000 cash and (i.) by signing a long-term note payable for the balance. i. Borrowed $5,100 cash by signing a short-term note payable. j. Paid $55,625 cash to reduce the long-term notes payable k. Issued 3,600 shares of common stock for $20 cash per share. I. Declared and paid cash dividends of $52,300. 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.) 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.) FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Year Ended December 31, 2017 Analysis of Changes December 31, 2016 Debit Credit December 31, 2017 Balance sheet-debit Cash 84,500 $ 18,100 66,400 Accounts receivable 61,625 20,755 82,380 Inventory 262,800 29,356 292,156 Prepaid expenses 2,115 795 1,320 Equipment 119,000 27,500 146,500 530,040 588,756 Balance sheet-credit Accumulated depreciation-Equipment 51,500 9,375 42,125 64,14 Accounts payable 131,175 67,034 Short-term notes payable 8,200 5,100 13,300 250 Long-term notes payable 59,750 59,500 Common stock, $5 par value 161,250 23,500 184,750 (48,500) Paid-in capital in excess of par value, common stock 0 48,500 Retained earnings 118,165 58,275 176,440 530,040 491,756 Statement of cash flows Operating activities Statement of cash flows Operating activities Investing activities Decrease in inventory 22,625 52,000 Cash paid for inventory Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term note payable 295,495 $ 87,670