The following Information applies to the questions displayed below] Forten Company a merchandiser, recently completed ts 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 credt, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are pald tn advance and are Initally deblted to Prepakd Expenses. The companys income statement and balance sheets follow December 31 2812 and 2816 Assets Cash Accounts receivable Inventory $ 49,Bee5 3,500 5e,625 275,656 :251,80e 1,875 392,516 377,800 188,880 (36,625)46,Be0) $ 513,391 $439,880 65,B1e 1,250 157,500 Total current assets Equipment Accum. depreciation-Equipnent Total assets Liabilities and Equity Accounts payable Short-tern notes payable Total current 1iabilities Long-tern notes payable Total 1iabilities Equity Common stock, $S par value 53,141 $ 114,675 10.000 : 0, 63,141 128,675 48,750 169.425 128,1415OS 162,75 1se,25 Paid-in capital in excess of par, common Retained earning:s Total liabilities and equity 37,580 185,006 185,e00129,125 513,391 439,880 FORTEN COMPANY Incone Statement For Year Ended December 31, 2017 s 582,500 285,eee 297,500 Sales Cost of goods sold Gross profit Operating expenses s 20.756 Depreclation expense 132,400 153,1se Other expenses Other gains (losses) 5125) Loss on sale of equipment Income before taxes Income taxes expense Net incone 139,225 24.250 5 114, 975 Additional Information on Year 2017 Transactions a The loss on the cash sale of equipment was $5125 (detals In b. Sold equlpment costing $46,875, wth accumulated depreclation of $30125, for $1n1625 cash. c Purchased equipment costing $96,375 by paying $30,000 cash and signing a long-term note payable for the balance. d. Borrowed $4,000 cash by signing a short-term note payable e Pald $50,125 cash to reduce the long-term notes payable. f Issued 2,500 shares of common stock for $20 cash per share g. Declared and pald cash dvMidends of $50100 Requtredt 1 Prepare a complete statoment of cash flows report ts operating aciMDos using the indirect method Aimbunts to be deshxied should be dkated with a mins son) Cash flows from operating activies Adjraments to reconcile net income to net cash provided by operations Cash flows from investing activibes Cash flows from financing activities Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year
