Forten Company. a merchandiser, recently completed its calendar-year 2018 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, balance sheets, and additional information follow 25 FORTEN COMPANY Comparative Balance Sheets Decenber 31, 2818 and 2817 $ 58,90 79,588 6,625 Accounts receivable Inventory Prepaid expenses Total current assets Equipeent Accum, depreciation-Equipment Total assets 4,838 284,656 10 656395,9 114,880 531,531 $468,948 $ 59,141 % 12,675 151,5e0 (39 6252(49,990) Liabilities and Equity Accounts payable Short-tere notes payable Total current liabilities Lone-tere notes payable Total liabilities Equity Comson stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity 11,800 7,289 132,41se 185,625 174, 70159,250 46,500 177 149116,065 531,531 460,94 FORTE Income Statement EN COMPANY Year Ended December 31, 2018 Ch 12 Homework 6 3 FORTEN COMPANY Sales Cost of goods sold Gross profit Operating expenses 25 points 26,750 138,49 165,15 Depreciation expense 0358-40 Other gains (Losses) Loss on sale of equipment Income before taxes Encome taxes expense 145,225 s112,57 eterences Additionel Information on Year 2013 Trensections a The loss on the cash sale of equipment was S11125(detals b. Sold equipment costing $64,875, with accumulated depreclation of $36.125, for $17625 cash e. Purchased equipment costing $102.375 by payling $42.000 cash and signing a long-term note payable for the balance d. Borrowed $4,600 cash by signing a short term note payable e. Paid $53125 cash to reduce the long-term notes payable f. Issued 3100 shares of common stock for $20 cash per share g Declared and paid cash dividends of $51.300 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) Prev 3ofNext> 3 Required information 2.5 points Statement of Cash Flows For Year Ended December 31, 2018 03584 Cash lows from operating activities SappesAdustmentsto reconole net ncometo net cash proded by operations Adjustments to reconcile net income to net cash provided by operations Income statement items not affecting cash ebook References Changes in current assets and current labilities Cash flows from invesing activities Cash flows from finanoing activites Ch 12 Homework Saved Help 3 Required information 25 points Changes in current assets and current liabities 035758 Skipped Cash fows from investing activities Cash flows from financing activites Cash balance st December 31, 2017 Cash balance at December 31, 2018 Prev3of 4 Next