FORTEN COMPANY Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 Assets Cash $ 57,400 73,320 283,156 1,260 415,136 392,920 152,500 (39,125) $528,511 $ 78,500 55,625 256,800 1,995 Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment 113,000 (48,500) $457,420 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 $ 58,141 11,500 69,641 62,500 132,141 $122,175 7,000 129,175 53,750 182,925 172,750 155,250 42,500 181,120 0 119,245 Total liabilities and equity $528,511 $457,420 FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales $607,500 290,000 317,500 Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Other gains (losses) Loss on sale of equipment Income before taxes 25,750 137,400 163,150 (10,125) 144,225 31,250 $112,975 Income taxes expense Net income Prev 2 3 of 5 Next Additional Information on Year 2017 Transactions 2 a. The loss on the cash sale of equipment was $10,125 (details in b). b. Sold equipment costing $61,875, with accumulated depreciation of $35,125, for $16,625 cash. c. Purchased equipment costing $101,375 by paying $40,000 cash and signing a long-term note payable for th d. Borrowed $4,500 cash by signing a short-term note payable. e. Paid $52,625 cash to reduce the long-term notes payable. f. Issued 3,000 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $51,100. nd Required: 1. Prepare a complete statement of cash flows; report its operating activities using the indirect method. (Amount should be indicated with a minus sign.) k 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: 0 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 yoar Prev