Homework Chapter 12 Saved Help Sa 5 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 2 of 3 4 points FORTEN COMPANY Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 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 63,400 82,500 59,625 260,800 1,30021015 405,000 117,000 eBook 79,360 289,156 433,216 148,500 Print 41,125) 50,500) $540,591 $471,500 References 62,141 $128,175 12,700 7,800 135,975 57,750 193,72!5 74,841 60,500 135,341 180,750 46,500 159,250 178,000 118,525 $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 Homework Chapter 12 6 Saved Help Sav Operating expenses Depreciation expense 29,750 Other expenses 141,400 171,150 Other gains (losses Loss on sale of equipment Income before taxes Income taxes expense Net income 14,125 148,225 36,850 $111,375 Part 2 of 3 4 points Problem 12-4AA Indirect: Cash flows spreadsheet LO P1, P2, P3, P4 eBook Additional Information on Year 2017 Transactions a. Net income was $111,375 b. Accounts receivable increased c. Inventory increased d. Prepaid expenses decreased Print e. Accounts payable decreased References f. Depreciation expense was $29,750 g. Sold equipment costing $73,875, with accumulated depreciation of $39,125, for $20,625 cash. This yielded a loss of $14,125 h. Purchased equipment costing $105,375 by paying $48,000 cash and (i.) by signing a long-term note payable for the balance i. Borrowed $4,900 cash by signing a short-term note payable j. Paid $54,625 cash to reduce the long-term notes payable k. Issued 3,400 shares of common stock for $20 cash per share I. Declared and paid cash dividends of $51,900 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 Spreadsheet for Statement of Cash Flows FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Year Ended December 31, 2017 Analysis of Changes December 31, 2016 Debit Credit December 31, 2017 Balance sheet-debit Cash Accounts receivable Inventory Prepaid expenses Equipment 63,400 82,500 59,625 260,800 2,075 117.000 522,000 Balance sheet-credit Accumulated depreciation-Equipment Accounts payable Short-term notes payable Long-term notes payable Common stock, $5 par value Paid-in capital in excess of par value, common stock Retained earnings 50,500 128,175 7,800 57,750 159,250 118.525 522,000 Statement of cash flows Operating activities Paid-in capital in excess of par value, common stock Retained earnings 118,525 522,000 Statement of cash flows Operating activities Investing activities Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term note payable