Required information [The following information applies to the questions displayed below.) Forten Company, a merchandiser, recently completed its calendar-year 2018 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, balance sheets, and additional Information follow FORTEN COMPANY Comparative Balance Sheets December 31, 2018 and 2017 es 2018 2017 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation Equipment Total assets Liabilities and Equity Accounts payable Short-ters notes payable Total current liabilities Long-ters notes payable Total liabilities Equity Common stock, 55 par value Pald-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 51,400 67,310 277,156 1,300 397.166 156,500 (37.125) $ 516,541 $ 74,500 51,625 252,800 2,825 380,950 109,000 (46,500) $ 443,450 $ 54,141 10,300 $ 116,175 6,200 122,375 49,250 172,125 ET 64,500 128,941 151,750 164,750 39,000 183.850 $ 516,541 119.575 $ 449,450 156,500 (37,125) $ 516,541 109,00 (46,500) $ 443,450 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 $ 54,141 10,300 64,441 64,500 128,941 $ 116,175 6,200 122,375 49,750 172,125 164,750 39,000 183,850 $ 516, 541 151,750 e 119,575 $ 443,450 FORTEN COMPANY Income Statement For Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 21,750 Other expenses 133,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income $ 587,500 286,eee 301,500 155, 150 (6,125) 140, 225 25,650 $ 114,575 W Additional Information on Year 2018 Transactions a. The loss on the cash sale of equipment was $6,125 (details in b). b. Sold equipment costing $49,875, with accumulated depreciation of $31125, for $12,625 cash. c. Purchased equipment costing $97,375 by paying $32,000 cash and signing a long-term note payable for the balance. d. Borrowed $4100 cash by signing a short-term note payable. e. Paid $50,625 cash to reduce the long-term notes payable. f. Issued 2.600 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $50.300. Required: Required information Statement of Cash Flows For Year Ended December 31, 2018 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations Income statement items not affecting cash Changes in current assets and current liabilities $ Cash flows from investing activities 0 Cash flows from financing activities 0 $ 0 Net increase (decrease) in cash Cash balance at December 31, 2017 Cash balance at December 31, 2018 5 BE