Required information

Use the following information for the Problems below.

[The following information applies to the questions displayed below.] 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 companys income statement and balance sheets follow.

FORTEN COMPANY Comparative Balance Sheets December 31, 2017 and 2016
	2017				2016
Assets
Cash	$	79,900			$	93,500
Accounts receivable		95,970				70,625
Inventory		305,656				271,800
Prepaid expenses		1,410				2,295
Total current assets		482,936				438,220
Equipment		137,500				128,000
Accum. depreciationEquipment		(46,625	)			(56,000	)
Total assets	$	573,811			$	510,220
Liabilities and Equity
Accounts payable	$	73,141			$	144,675
Short-term notes payable		16,000				10,000
Total current liabilities		89,141				154,675
Long-term notes payable		55,000				68,750
Total liabilities		144,141				223,425
Equity
Common stock, $5 par value		202,750				170,250
Paid-in capital in excess of par, common stock		57,500				0
Retained earnings		169,420				116,545
Total liabilities and equity	$	573,811			$	510,220

FORTEN COMPANY Income Statement For Year Ended December 31, 2017
Sales				$	682,500
Cost of goods sold					305,000
Gross profit					377,500
Operating expenses
Depreciation expense	$	40,750
Other expenses		152,400			193,150
Other gains (losses)
Loss on sale of equipment					(25,125	)
Income before taxes					159,225
Income taxes expense					52,250
Net income				$	106,975

Problem 12-3A Indirect: Statement of cash flows LO A1, P1, P2, P3

Additional Information on Year 2017 Transactions

1. The loss on the cash sale of equipment was $25,125 (details in b).
2. Sold equipment costing $106,875, with accumulated depreciation of $50,125, for $31,625 cash.
3. Purchased equipment costing $116,375 by paying $70,000 cash and signing a long-term note payable for the balance.
4. Borrowed $6,000 cash by signing a short-term note payable.
5. Paid $60,125 cash to reduce the long-term notes payable.
6. Issued 4,500 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $54,100.

Required: 1. Prepare a complete statement of cash flows; report its operating activities using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

Problem 12-4AA Indirect: Cash flows spreadsheet LO P1, P2, P3, P4

Additional Information on Year 2017 Transactions

1. Net income was $106,975.
2. Accounts receivable increased.
3. Inventory increased.
4. Prepaid expenses decreased.
5. Accounts payable decreased.
6. Depreciation expense was $40,750.
7. Sold equipment costing $106,875, with accumulated depreciation of $50,125, for $31,625 cash. This yielded a loss of $25,125.
8. Purchased equipment costing $116,375 by paying $70,000 cash and (i.) by signing a long-term note payable for the balance.
9. Borrowed $6,000 cash by signing a short-term note payable.
10. Paid $60,125 cash to reduce the long-term notes payable.
11. Issued 4,500 shares of common stock for $20 cash per share.
12. Declared and paid cash dividends of $54,100.

Required: Prepare a complete statement of cash flows using a spreadsheet; report its operating activities using the indirect method. (Enter all amounts as positive values.)

Problem 12-5AB Direct: Statement of cash flows LO P1, P3, P5

Additional Information on Year 2017 Transactions

1. The loss on the cash sale of equipment was $25,125 (details in b).
2. Sold equipment costing $106,875, with accumulated depreciation of $50,125, for $31,625 cash.
3. Purchased equipment costing $116,375 by paying $70,000 cash and signing a long-term note payable for the balance.
4. Borrowed $6,000 cash by signing a short-term note payable.
5. Paid $60,125 cash to reduce the long-term notes payable.
6. Issued 4,500 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $54,100.

Required: 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.)

FORTEN COMPANY Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operations: Cash flows from investing activities Cash flows from financing activities: 0 Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year 0 FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Year Ended December 31, 2017 Analysis of Changes December 31, 2016 Debit Credit December 31, 2017 $ 79,900 Balance sheetdebit Cash Accounts receivable Inventory Prepaid expenses Equipment 93,500 70,625 271,800 2,295 128,000 566,220 $ 79,900 Balance sheet-credit Accumulated depreciation Equipment Accounts payable Short-term notes payable Long-term notes payable Common stock, $5 par value Paid-in capital in excess of par value, common stock Retained earnings 56,000 144.675 10,000 68,750 170,250 116,545 566,220 Statement of cash flows Operating activities Investing activities Financing activities Non cash investing and financing activities Purchase of equipment financed by long-term note payable FORTEN COMPANY Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year