FORTEN COMPANY Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 $ 54,400 70,310 280, 156 1,280 406,146 154,500 (38,125) $ 522,521 $ 76,500 53,625 254,800 2,005 386,930 111,000 (47,500) $ 450, 430 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, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 56,141 10,900 67,041 63,500 130,541 $119,175 6,600 125, 775 51,750 177,525 153, 250 168,750 40,500 182,730 $ 522,521 119,655 $450, 430 $597,500 288,000 309,500 FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 23,750 Other expenses 135,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 159,150 (8,125) 142,225 28,450 $113,775 Additional Information on Year 2017 Transactions a. The loss on the cash sale of equipment was $8,125 (details in b). b. Sold equipment costing $55,875, with accumulated depreciation of $33,125, for $14,625 cash. c. Purchased equipment costing $99,375 by paying $36,000 cash and signing a long-term note payable for the balance. d. Borrowed $4,300 cash by signing a short-term note payable. e. Paid $51,625 cash to reduce the long-term notes payable. f. Issued 2,800 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $50,700. $ 41,300 Net cash provided by operating activities Cash flows from investing activities Cash received from sale of equipment Cash paid for equipment 14,625 (36,000) (21,375) Net cash used in investing activities Cash flows from financing activities: Notes payable long-term increase Cash paid on long-term note Cash received from issuing stock Cash paid for dividends (51,625) 51,625 X 56,000 (50,700) $ Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year 5,300 25,225 76,500 101,725 $