Problem 12-3A Indirect: Statement of cash flows LO 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) al 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 2015 2014 Assets Cash Accounts receivable Inventory Prepaid expenses s 30,144 62,000 51,125 250,800 65,125 1,200 1,60p 371,375 142,000 365,5 Total current assets Equipment Accum. depreciation-Equipment 25 100,000 (32,800) (40,000) Total assets $ 480,575 425,525 Liabilities and Equity Accounts payable Short-term notes payable $ 60,075 $ 108.200 6,000 4.000 Total current liabilities Long-term notes payable 66.075 112.200 33.000 38,175 104.250 145.200 Total liabilities Equity Common stock, $5 par value Paid-n capital in excess of par, common stock Retained earnings 152.500 22.500 201.325 145.000 135 32