Homework Chapter 12 Help Saved 6 Use the following information for the Problems below 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 Part 3 of 3 FORTEN COMPANY Comparative Balance Sheets December 31, 2017 and 2016 points 2017 2016 Assets as Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets 63,400 82,500 59,625 260,800 2,075 405, 000 117,000 50,500 $540,591 471,500 79,360 289,156 1,300 433,216 148,500 (41,125) eBook Print Liabilities and Equity Accounts payable Short-term notes payable References 62,141 $128,175 7,800 135,975 57.750 135,341 193,725 12,700 74,841 60,500 urrent 1liabilities 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 180,750 46,500 159,250 178,000118 525 $540,591 $471,500 FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit $627,500 294,000 333,500 Operating expenses Depreciation expense 29,750 141,400 171,150 Other expenses Other gains (losses (14,125) 148,225 36,850 $111,375 Loss on sale of equipment Income before taxes Income taxes expense Net income Part 3 of 3 points Problem 12-5AB Direct: Statement of cash flows LO P1, P3, P5 eBook Additional Information on Year 2017 Transactions a. The loss on the cash sale of equipment was $14,125 (details in b) b. Sold equipment costing $73,875, with accumulated depreciation of $39,125, for $20,625 cash. c. Purchased equipment costing $105,375 by paying $48,000 cash and signing a long-term note payable for the balance d. Borrowed $4,900 cash by signing a short-term note payable e. Paid $54,625 cash to reduce the long-term notes payable Print Referencesf Issued 3,400 shares of common stock for $20 cash per share g. Declared and paid cash dividends of $51,900 Required Prepare a complete statement of cash flows; report its operating activities according to the direct 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 Homework Chapter 126 Saved 0 Required information FORTEN COMPANY Statement of Cash Flows For Year Ended December 31, 2017 Part 3 of 3 5 points Cash flows from operating activities eBook Print Cash flows from investing activities References Cash flows from financing activities Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year
