Problem 12-1A Indirect: Statement of cash flows LO A1, P1, P2, P3 Forten Company, a merchandiser, recently completed its calendar-year 2013 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 balance sheets and income statement follow. FORTEN COMPANY Comparative Balance Sheets December 31, 2013 and 2012 2013 2012 Assets 66,379 70,500 Cash 77,025 59,625 Accounts receivable 262,156 233,800 Merchandise inventory Prepaid expenses 1,540 2,025 Equipment 159.425 117,000 Accum. depreciation Equipment (50,650) (57,000) 515,875 425,950 Total assets Liabilities and Equity Accounts payable 58,375 110,750 Short-term notes payable 9,400 5,700 41,500 Long-term notes payable 25,825 Common stock, $5 par value 165,250 149,250 Paid-in capital in excess of par, common stock 48,000 Retained earnings 209,025 118,750 515,875 425,950 Total liabilities and equity