Required information Use the following information for the Problems below Forten Company, a merchandiser, recently completed its calendar-year 2017 operations. For the sals, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purch credit, (4) all debits to Accounts Payable reflect cash payments for inventory, end (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company's income statement and balance sheets follow year, (1) all sales are FORTEN COMP Comparative Balance Sheets December 31, 2017 and 2016 5 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 S57,40e 78,5e8 55,625 283,156256,880e 1,995 392,920 113,800 (39,125)(48,500) s 528,511 457,428 73,320 1,260 415,136 152,500 s 58,141 s 122,175 7,800 129,175 53,750 182,925 11,500 69,641 62,588 132,141 172,750 155,256 119,245 S 528,511 $ 457,428 42, 500 181,120 (Prey 1 of 2 ll Next > Incone Statement Sales Cost of goods sold Gross profit $ 607,500 298,880 317,500 137,400 163,150 Other Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense 10,125 144,225 31,250 s 112,975 Additional Information on Year 2017 Transactions a. The loss on the cash sale of equipment was $10,125 (details in b). b. Sold equipment costing $61,875, with accumulated depreciation of $35,125, for $16,625 cash. c. Purchased equipment costing $101,375 by paying $40.000 cash and signing a long-term note payable for the balance d. Borrowed $4,500 cash by signing a short-term note payable e. Paid $52,625 cash to reduce the long-term notes payable. f. Issued 3,000 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $51,100. roblem 16-4AA Indirect: Cash flows spreadsheet LO P1, P2, P3, P4 equired: Spreadsheet for Statement of Cash Flows r 31, 2016 Credit 78,500S21.100 55,625 57,400 Accounts receivable 256.800 26,356 283, 156 735 113,000 505,920 39,500 567.636 48,500f S 122,175 9,375 39,125 58 141 Accounts payable 64,034 7,000 53,750 155.250 4,500 8,750 62,500 172,750 42,500 181,120 567,636 stock, $5 par value 42,500 61,875 119245m 505.920 Ret t of cash flows Prey 1 of 2 Next > 05,920 | 112,975 25,750 (17,695) (26,356 in inventory (64,034 10.125 activities to (40,000 16,625 Financing activities on short-term note on long-term note 60,000 (51,100) Non cash and 61 S156