INDIRECT METHOD PLEASE!

FORTEN COMPANY Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 $ 69,400 85,400 295, 156 1,340 451,296 144,500 (43, 125 ) $552,671 $ 86,500 63,625 264,800 2,155 417,080 121,000 (52,500) $ 485,580 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 $ 66,141 13,900 80,041 58,500 138,541 $134,175 8,600 142.775 61,750 204,525 163,250 188,750 50,500 174,880 $552,671 117,805 $ 485,580 $647,500 298,000 349,500 FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 33,750 Other expenses 145,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 179,150 (18,125) 152, 225 42,450 $ 109,775 Additional Information on Year 2017 Transactions a. Net income was $109,775. b. Accounts receivable increased. c. Inventory increased. d. Prepaid expenses decreased. e. Accounts payable decreased. f. Depreciation expense was $33,750. g. Sold equipment costing $85,875, with accumulated depreciation of $43,125, for $24,625 cash. This yielded a loss of $18,125. h. Purchased equipment costing $109,375 by paying $56,000 cash and (i.) by signing a long-term note payable for the balance. i. Borrowed $5,300 cash by signing a short-term note payable. j. Paid $56,625 cash to reduce the long-term notes payable. k. Issued 3,800 shares of common stock for $20 cash per share. 1. Declared and paid cash dividends of $52,700. 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 For Year Ended December 31, 2017 Analysis of Changes December 31, Debit Credit 2016 December 31, 2017 S $ 69,400 Balance sheet-debit Cash Accounts receivable Inventory Prepaid expenses Equipment 86,5001 63,625 264,800 2. 1551 121,000 538,080 S 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 52,500 134,175 8,600 61,750 163,250 117,8051 538,080 S IS Statement of cash flows Operating activities HU Investing activities Financing activities Non cash investing and financing activities Purchase of equipment financed by long- term note payable