Required information Forten Company, a merchandiser, recently completed its calendar-year 2017 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. ped Book 2017 2016 Print FORTEN COMPANY Comparative Balance Sheets December 31, 2017 and 2016 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 $ 49,800 65,810 275,656 1,250 392,516 157,500 (36,625) $513,391 $ 73,500 50,625 251,800 1,875 377,800 108,000 (46,000) $439,800 eferences $ 53,141 10,000 63,141 65,000 128,141 $114,675 6,000 120,675 48,750 169,425 162,750 37,500 185,000 $513,391 150,250 e 120, 125 $439,800 FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Check my work $582,500 285,000 297,500 FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 20,750 Other expenses 132,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income pped 153, 150 I (5,125) 139, 225 24,250 $114,975 ook Print rences Additional Information on Year 2017 Transactions a. The loss on the cash sale of equipment was $5,125 (details in b). b. Sold equipment costing $46,875, with accumulated depreciation of $30,125, for $11,625 cash. c. Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term note payable for the balance. d. Borrowed $4,000 cash by signing a short-term note payable. e. Paid $50,125 cash to reduce the long-term notes payable. f. Issued 2,500 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $50,100. Check my wor 1 Prepare a complete statement of cash flows; report its operating activities according to the direct method (Amounts to be deducted should be indicated with a minus sign.) 20 points FORTEN COMPANY Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities Skipped Boo Print Cash flows from investing actes References Cash flows from financing activities Net increase decrease in cash Cash balance at beginning of your Cash balance at end of year
