rk Help Se Forten Company, a merchandiser, recently completed its calendar-year 2017 operations. For the year, (1) all sales are credt 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. 5 December 31, 2017 and 2016 s 69,40086, see 63,625 264,800 2.155 417,080 121,000 85,480 295,156 1,340 Inventory Prepaid expenses Total current assets Equipment 144,500 $ 552,671 $485,588 Labilities and Equity Accounts payable 66,141 134,175 8,608 142,775 61,750 204, 525 80,041 58,500 Long-term notes payable Equity 188,750 50,500 163,250 -3741880-117, tes- Total liabilities and equit of 1 Cost of goods Problem 12-3A Indirect: Statement of cash flows LO A1, P1, P2, P3 Additional Information on Year 2017 Transactions o. The loss on the cash sale of equipment was $18,125 (details in b) b. Sold equipment costing $85,875, with accumulated depreciation of $43125, for $24.625 cash c. Purchased equipment costing $109,375 by paying $56,000 cash and signing a long-term note payable for the bal d. Bormrowed $5,300 cash by signing a short-term note payable e. Pald $56.625 cash to reduce the long-term notes payable re a to be to r arch Cash paid for equipment Net cash used in financin 0 Cash flows from financing activities: Cash borrowed on short-term note Cash paid on long-term note Cash received from issuing stock Cash paid for dividends Net cash used in financing activities Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year 0