ormation applies to the questions d e Foren Company, a merchandise recently completed 200 tons of the ye e s are credit sales, credo Accounts Receivable refiestas cec e reflect cash receipts from customers, all purchases of inventory are on credit 14 debits to Accounts Payable refled cash onventory and Other Expenses are paid in advance and are y debited to Prepaid Expenses. The company's income statement ance sheets, and additional information follow D FORTEN COMPANY Comparative Balance Sheets December 31, 2018 and 2017 Assets 2018 2017 $ 76,900 92.950 302.656 1.390 473,896 139,500 145.625) 56777 91.500 68625 269 BOO 2.255 432,180 126.000 (55.000) $503 180 $ 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 $ $ 741 15,400 86,541 141, 675 9.600 151275 66,750 218.025 56.000 142,541 177.250 198750 64,500 161,980 562771 107,905 $ 503,180 $ $ 672,500 303,000 369,500 FORTEN COMPANY Income Statement For Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 38.750 Other expenses 150.400 Other gains flosses) Loss on sale of equipment Income before taxes Income taxes expense Net income 189,150 23,125) 157225 49 450 $ 107,775 US $5700 Required comp letamento cash flows using a sheet reports operating a s ing the indeed FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Year Ended December 31, 2018 Analysis of Changes December 31, 2017 Debit Credit December 31, 2018 $ $ Balance sheet debit Cash Accounts receivable Inventory Prepaid expenses Equipment 91,500 68,625 260,800 2.255 126.000 558 180 19,735 28,356 $ $ $ Balance sheet credit Accumulated depreciation Equipment Accounts payable Short-term notes payable Te rm notes payable Common stock 55 par value Paldin capital in excess of para Retained earrings 55,000 141.675 9.500 66,750 mon stock 107.905 SA 180 Salement of cash flows ng activities Non cashing and rang d es Purchase of equipment financed by long-term ne Payable $ 48,091 $ 0