Requlred Informetlon [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 Recelvable reflect cash recelpts 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 pald In advance and are Initially deblted to Prepald Expenses. The company's Income statement and balance sheets follow FORTEN COMPANY Comparative Balance Sheets December 31, 2817 and 2816 2817 2816 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets $ 69,48 85,488 295, 156 1, 348 451,296 144, see 43, 125 552,671 86,588 63,625 264, 880 2,155 417,888e 121,e8e (52,58e) 485, 58e Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities Long-term notes payable Total 1iabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stoclk Retained earnings Total liabilities and equity 5 66,141 13,98e 88,841 134,17S 8,686 142,775 61,758 284,525 58,58 138,541 188,75e 58,58e 163,258 174,88 117,885 552,671 485, 58e FORTEN COMPANY Income Statement For Year Ended December 31, 2e17 Sales Cost of goods sold Gross profit Operating expenses 647, 5ee 298,80e 349,58e Depreciation expense $ 33,758 Other expenses Other gains (losses) 145,48 179, 15e Loss on sale of equipment Income before taxes Income taxes expense Net income (18,125 152,225 42,458 189,775 a. The loss on the cash sale of equipment was $18125 (details in b. Sold equipment costing $85,875, with accumulated depreclation of $43,125, for $24,625 cash. c. Purchased equipment costing $109,375 by paying $56,000 cash and signing a long-term note payable for the balance. d. Borrowed $5,300 cash by signing a short-term note payable. e. Pald $56,625 cash to reduce the long-term notes payable f. Issued 3,800 shares of common stock for $20 cash per share. g. Declared and pald cash dividends of $52.700. Required: 1. Prepare a complete statement of cash flows; report its operating activities using the indirect method. (Amounts to be deducted should be indicated wlth 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 Cash balance atbeginning of year Cash balance at end of year Additional Information on Year 2017 Transactions a. Net Income was $109,775 b. Accounts recevable Increased. C. Inventory Increased. d. Prepald expenses decreased. e. Accounts payable decreased f. Depreclation expense was $33.750. g. Sold equlpment costing $85,875, with accumulated depreclation of $43125, for $24,625 cash. This ylelded a loss of $18125. h. Purchased equipment costing $109,375 by paying $56,000 cash and (.) by signing a long-term note payable for the balance. L Borrowed $5,300 cash by signing a short-term note payable. J. Pald $56,625 cash to reduce the long-term notes payable k. Issued 3,800 shares of common stock for $20 cash per share. L Declared and pald cash dMMdends of $52700. 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.) Required information for Statement of Cash Flows For Year Ended December 31, 2017 Analysis of Changes Credit 1.2016Debit December 31, 2017 Balance sheet-debit Cash 86.500 63,625 264,800 2.155 121,000 69.400 Prepaid expenses Balanca sheet-credit Accumulated 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 52 500 134,175 8,600 61,750 163,250 117.805 538,08 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 Additional Information on Year 2017 Transactions a. Purchased equipment for $49,500 cash. b. Issued 12,800 shares of common stock for $5 cash per share. c. Declared and pald $97,000 In cash dividends. Required: Prepare a complete statement of cash flows: report its cash Inflows and cash outflows from operating activities according to the Indirect method. (Amounts to be deducted should be indicated with a minus sign.) GOLDEN CORPORATION 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: Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year Additional Information on Year 2017 Transactions a. Net Income was $148,800. b. Accounts recevable Increased. c. Inventory increased. d. Accounts payable Increased. e Income taxes payable Increased f Depreclation expense was $54,000. g. Purchased equipment for $49,500 cash. h. Issued 12,800 shares at $5 cash per share L Declared and pald $97,000 of cash dividends. Required: Prepare a complete statement of cash flows using a spreadsheet, report operating activlties under the indirect method. (Enter all amounts as posltive values.) Prepare a complete statement of cash flows using a spreadsheet, report operating activities under the Indlrect method. (Enter all amounts as positive values.) Spreadsheet for Statement of Cash Flows For Year Ended December 31, 2017 Analysis of Changes Debit December 31, 2016 Credit December 31, 2017 Balance sheet-debit balance accounts Cash 115,800 79,000 534,000 307.000 1,035,800 172.000 Equipment Balanca sheet-credit balance accounts Accounts payable Income taxes payable Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings 108,000 79,000 29,100 578,000 172,000 71,700 1.035,800 Statement of cash flows Operating activities Investing activities Financing activities