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 FORTEN COMPANY Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 $ 76,900 92.950 302,656 1,390 473,896 129.500 (45,625) $ 567,771 $ 91,500 68,625 269,800 2,255 432,180 126,000 (55,000 $ 503,180 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total liabilities Equity Common stock, 55 par value Paid-in capital in excess of par, com Retained earnings 5 71,141 15.400 36.541 56,000 142,541 $ 141.675 9,600 51.275 66,750 218,025 177,250 198,750 64.500 161,950 107,905 of 1 !!! Nex Retained earnings Total liabilities and equity 161,980 $ 567,771 197,995 $ 503, 189 $ 672,500 303,000 369,500 FORTEN COMPANY Income Statement For Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net 'income 189,150 (23, 125) 49.450 $ 107,775 Problem 12-4AA Indirect: Cash flows spreadsheet LO P1, P2, P3, P4 Additional Information on Year 2018 Transactions m ein to search Additional Information on Year 2018 Transactions a. Net income was $107775. b. Accounts receivable increased. c. Inventory increased. d. Prepaid expenses decreased. e. Accounts payable decreased. f. Depreciation expense was $38.750. g. Sold equipment costing $100,875, with accumulated depreciation of $48,125, for $29,625 cash. This yielded a loss of $23,125 h. Purchased equipment costing $114.375 by paying $66,000 cash and (i.) by signing a long-term note payable for the balance. i. Borrowed $5,800 cash by signing a short-term note payable. j. Paid $59.125 cash to reduce the long-term notes payable. k. Issued 4,300 shares of common stock for $20 cash per share. 1. Declared and paid cash dividends of $53,700. 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 1 of 1 !!! here to search Required information FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Year Ended December 31, 2018 Analysis of Changes December 31, 2017 Debit Credit December 31, 2018 Balance sheetdebit Cash Accounts receivable Inventory Prepaid expenses Equipment 19.735 28.356 91,500 68 625 269.800 2.255 126.0001 558. 180 76.900 88,360 298.156 463,416 Balance sheet--credit Accumulated depreciation Equipment Accounts payable Short-term notes payable Long-term notes payable Common stock. 55 par value 55.000 141,675 9.6001 66.750 177 2501 1 of 1 !!! Next o search Required information Retained earnings 107,905 558,180 Statement of cash flows Operating activities Investing activities Financing activities Prev 1 of 1 !!! Next to search Required information Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term note payable 48.091 5 1 of 1 !!! here to search 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 FORTEN COMPANY Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 $ 76,900 92.950 302,656 1,390 473,896 129.500 (45,625) $ 567,771 $ 91,500 68,625 269,800 2,255 432,180 126,000 (55,000 $ 503,180 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total liabilities Equity Common stock, 55 par value Paid-in capital in excess of par, com Retained earnings 5 71,141 15.400 36.541 56,000 142,541 $ 141.675 9,600 51.275 66,750 218,025 177,250 198,750 64.500 161,950 107,905 of 1 !!! Nex Retained earnings Total liabilities and equity 161,980 $ 567,771 197,995 $ 503, 189 $ 672,500 303,000 369,500 FORTEN COMPANY Income Statement For Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net 'income 189,150 (23, 125) 49.450 $ 107,775 Problem 12-4AA Indirect: Cash flows spreadsheet LO P1, P2, P3, P4 Additional Information on Year 2018 Transactions m ein to search Additional Information on Year 2018 Transactions a. Net income was $107775. b. Accounts receivable increased. c. Inventory increased. d. Prepaid expenses decreased. e. Accounts payable decreased. f. Depreciation expense was $38.750. g. Sold equipment costing $100,875, with accumulated depreciation of $48,125, for $29,625 cash. This yielded a loss of $23,125 h. Purchased equipment costing $114.375 by paying $66,000 cash and (i.) by signing a long-term note payable for the balance. i. Borrowed $5,800 cash by signing a short-term note payable. j. Paid $59.125 cash to reduce the long-term notes payable. k. Issued 4,300 shares of common stock for $20 cash per share. 1. Declared and paid cash dividends of $53,700. 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 1 of 1 !!! here to search Required information FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Year Ended December 31, 2018 Analysis of Changes December 31, 2017 Debit Credit December 31, 2018 Balance sheetdebit Cash Accounts receivable Inventory Prepaid expenses Equipment 19.735 28.356 91,500 68 625 269.800 2.255 126.0001 558. 180 76.900 88,360 298.156 463,416 Balance sheet--credit Accumulated depreciation Equipment Accounts payable Short-term notes payable Long-term notes payable Common stock. 55 par value 55.000 141,675 9.6001 66.750 177 2501 1 of 1 !!! Next o search Required information Retained earnings 107,905 558,180 Statement of cash flows Operating activities Investing activities Financing activities Prev 1 of 1 !!! Next to search Required information Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term note payable 48.091 5 1 of 1 !!! here to search