Problem 12-3A Indirect: Statement of cash flows A1 P1 P2 P3 Forten Company, a merchandiser, recently completed its calendar-year 2015 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 FORTEN COMPANY Comparative Balance Sheets December 31, 2015 and 2014 2015201H $ 49,800 73,500 65,810 275,656 251800 InventorY . Prepaid expenses Total curent assets Equipment .. 392,516 377,800 157,500 08,000 (36,625 (46,000) $513.39- $439,800 FORTEN COMPANY Income Statement For Year Ended December 31,2015 Total assets Liabilities and Equity Accounts payable 285,000 297,500 Cost of goods sold .. Long-term notes payable Total Ilablities 63,141 20,675 65,000 48,750 28,141 169.425 Operating expenses . Depreclation expense Other gains (losses) 162,750 50,250 Common stock, $5 par value Pald-In caplital in excess . . . Loss on sale of equipment . Income before taxes Income taxes expense . . Net Income 139,225 of par, common stock Retained earnings Total lablities and equity 37,500 185,000 120,125 $114,975 $51339 $439,800