Saved 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) al soles 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 CORNEY Comparative Balance Sheets December 31, 2018 and 2017 2013 2017 Assets Cash Accounts receivable Inventory prepaid expenses Tatal current is Equipment Greciation Equipe Total assets Listies and Equity Accounts 529.900 95,970 305.056 1.410 402.96 137.500 (46.625 572,011 0,500 70,65 271,00 2295 430.220 120.00 5 510,220 Total current lities Lng T H Ty l Total 1 Equity Co stock. 15 value Paid-1 can see Butained Total ties and $). 11,000 89, S. 144,141 2.750 167, 155.41 $ 3.73.11 $ 144,675 10.NO 154.675 63.750 221.421 10.25e 145 519,20 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-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 $ 79,900 95,970 305,656 1,410 482,936 137,500 (46,625) $ 573,811 $ 93,500 70,625 271,800 2,295 438, 220 128,000 (56,000) $ 510,220 $ 73,141 16,000 89,141 55,000 144, 141 $ 144,675 10,000 154,675 68.750 223,425 282,750 67.500 159.420 $ 573,811 180,250 e 106,545 $ 510,22e FORTEN COMPANY Income Statement For Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 40,750 Other expenses 152,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net Income 5 682,500 305,000 377,500 193,150 25,125) 159.225 52,250 $ 186,975 Aint Homework 6 Saved Required information 5682,500 305.000 372,500 DOW For Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 40,750 Other expenses 152,400 Other gains classes) Loss on sale of equipment Income before taxes Income tax expense Net Income 193.150 (25 125) 159.225 $2,250 $ 106,975 Additional Information on Year 2018 Transactions a. The loss on the cash sale of equipment was $25.125 (details in b. Sold equipment costing $106 875, with accumulated depreciation of $50125, for $31625 cash c. Purchased equipment Costing $116.375 by paying $70,000 cash and signing a long term note payable for the balance d. Botowed $6.000 cash by signing a short term note payable e. Paid $60.125 cash to reduce the long-term notes payable Issued 4500 shares of common stock for $20 cash per share 9. Declared and paid cash dividends of $54100 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) FORTEN COMPANY Stoti [The following information applies to the questions displayed below.] Forten Company, a merchandiser, recently completed its calendar-year 2018 operations. For the sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expens and are initially debited to Prepaid Expenses. The company's income statement, balance sheets, a information follow FORTEN COMPANY Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 $ 79,900 95,970 3e5,656 1,410 482,936 137,500 (46,625) $ 573,811 Assets 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 Comon stock, $5 par value Vald.in capital in excess of par, common stock Retained earnings Total abilities and equity $ 93,500 70,625 271,800 2,295 438, 22e 128 , (56,000) $ 510,220 $ 73,141 16,000 89,141 55.000 144, 141 $ 144,675 10,000 154.675 68,250 223,425 180,250 202,750 67.500 159.420 5573.11 100, 545 5.510.220 FORTIN COMPANY TA 482,936 137,500 (46,625) $ 573, 811 438, 220 128 , (56,000) $ 510,220 uau CAPE 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 $ 73,141 16 , 89, 141 55,000 144,141 $ 144,675 1 , 154,675 68,750 223,425 202,750 67,500 159,420 $ 573,811 180, 250 e 106,545 $ 510, 220 $ 682,500 305,000 377,500 FORTEN COMPANY Income Statement For Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 40,750 Other expenses 152,400 other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net Income 193,150 (25,125) 159, 225 52,250 $ 106,975 Additional Information on Year 2018 Transactions a. The loss on the cash sale of equipment was $25,125 (details in b). b. Sold equipment costing $106,875, with accumulated depreciation of $50,125, for $31,625 cash c. Purchased equipment costing $116,375 by paying $70,000 cash and signing a long-term note payable fo Pod 6000 Cachwinn Achttem nebo Required information $ 682,5ee 305, eee 377,500 For Year Ended December 31, 2018 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 40,750 Other expenses 152,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense et Income 193, 150 (25.125) 159,225 52,250 $ 106,975 Additional Information on Year 2018 Transactions a. The loss on the cash sale of equipment was $25,125 (details in b. Sold equipment costing $106.875, with accumulated depreciation of $50,125, for $31625 cash c. Purchased equipment costing $116, 375 by paying $70,000 cash and signing a long-term note payable for the balance d. Borrowed $6.000 cash by signing a short term note payable e. Paid $60125 cash to reduce the long term notes payable 1. issued 4500 shares of common stock for $20 cash per share 9. Declared and paid cash dividends of $54100 Required