Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Helo Sa 17 Required information [The following information applies to the questions displayed below.) Forten Company, a merchandiser, recently completed its calendar year 2017 operations.

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Helo Sa 17 Required information [The following information applies to the questions displayed below.) Forten Company, a merchandiser, recently completed its calendar year 2017 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 and balance sheets follow points FORTEN COMPANY Comparative Balance Sheets December 31, 2017 and 2016 $ 52. 68,810 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation Equipment Total assets Liabilities and Equity Accounts payable Short-ter notes payable Total current liabilities Long-tern notes payable Total liabilities 275,656 1220 401,636 155,500 (37,625) $ 519,511 5 25,500 52.625 253,00 1,995 183.920 110.000 (47,000) 5446,920 $ $ 117,675 55,141 10,00 65.741 64,000 129,741 124,025 50,250 174,825 Exam #2 (Ch 7-12) Saved Help 129,741 174,825 SLC payout Total liabilities Equity Common stock, 35 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity 152,250 166,758 39,5ee 183.52e 119,845 $ 519,511 446,920 points $ 592,500 287,000 305, See FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 22,750 Other expenses 134, 4ee Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net Income 157,150 (2,125) 141.225 27.05e $ 114,175 Additional Information on Year 2017 Transactions a. The loss on the cash sale of equipment was $7125 (details in b). h Solderinment netinn 2875 with accumulateri deneration of 532125 for 12625 cach Additional Information on Year 2017 Transactions a. The loss on the cash sale of equipment was $7125 (details in b). b. Sold equipment costing $52,875, with accumulated depreciation of $32,125, for $13,625 cash. c Purchased equipment costing $98,375 by paying $34.000 cash and signing a long-term note payable for the balance d. Borrowed $4,200 cash by signing a short-term note payable e. Paid $51125 cash to reduce the long-term notes payable f. Issued 2,700 shares of common stock for $20 cash per share g. Declared and paid cash dividends of $50,500. bon 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.) 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 Required information Cash Bows from operating activities Adjustments to reconcile net income to net cash provided by operations points Cash flows from investing activities Cash flows from financing activities Required information Cash flows from investing activities points Cash flows from financing activities Net increase (decrease) In cash Cash balance at beginning of year Cash balance at end of year Required information [The following information applies to the questions displayed below.] Golden Corp., a merchandiser, recently completed its 2017 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. (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The company's balance sheets and income statement follow points GOLDEN CORPORATION Comparative Balance Sheets December 31, 2017 and 2016 $ 184,000 113.000 631.000 9.20.00 388, (168,000). $1,148,00 $ 129.000 91.000 546,00 756.00 319.00 (114,000) 5971.000 Assets Cash Accounts receivable Iwwentory Total current assets Equipment Accum, depreciation Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, 32 par valve Pald.in capital in excess of par value, c Retained earnings $ 122,000 48.000 125.000 91.00 55,100 126, 100 on stoc 216.000 125,000 SES, 190.000 66,900 Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity 216,000 125,989 $1,148,999 190.000 66,909 $971,00 points $1,892,000 1,106,000 786.009 GOLDEN CORPORATION Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 54,00 Other expenses 514,000 Income before taxes Income taxes expense Net Income 568,000 218,000 50,000 168,000 $ Additional Information on Year 2017 Transactions a. Purchased equipment for $69,900 cash b. Issued 14,000 shares of common stock for $5 cash per share. c. Declared and paid $109,000 in cash dividends. Required: Help a. Purchased equipment for $69,900 cash b. Issued 14,000 shares of common stock for $5 cash per share c Declared and paid $109,000 in cash dividends. Required: Prepare a complete statement of cash flows, report its cash inflows and cash outflows from operating activities according to the indirect method (Amounts to be deducted should be indicated with a minus sign.) points GOLDEN CORPORATION Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities Adjustments to reconcilie net income to not cash provided by operations Required information 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 year

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Theories Of Audit Expectations And The Expectations Gap

Authors: Ecaterina Volosin

1st Edition

3640192311, 978-3640192311

More Books

Students also viewed these Accounting questions