Check my work 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 company's income statement and balance sheets follow Comparative Balance Sheets December 31, 2017 and 2016 $ 64,900 $ 1,500 60.625 290.656 437,736 147,500 (41,625) $ 543,611 2.095 408,eze 118,000 (51,83) $475,02 Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accun. 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 $ 129,675 196,425 FORTEN COMPANY Income Statement For Year Ended December 31, 2012 $632,500 173.150 cost of poods sold Gross profit Operating expenses Depreciation expense other expenses other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net incon (15.125) Problem 12-3A Indirect: Statement of cash flows LO A1, P1, P2, P3 Additional Information on Year 2017 Transactions a. The loss on the cash sale of equipment was $15.125 (details in by b. Sold equipment costing $76 875, with accumulated depreciation of $40,125 for $21,625 cash c. Purchased equipment costing $106.375 by paying $50,000 cash and signing a long-term note payable for the balance. d. Borrowed 55.000 cash by signing a short-term note payable. e. Paid $55,125 cash to reduce the long-term notes payable. f. Issued 3.500 shares of common stock for $20 cash per share 9. Declared and paid cash dividends of $52,100. 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.) b. Sold equipment Cosung 576,875, with accumulated beprecen c. Purchased equipment costing $106,375 by paying $50,000 cash and signing a long-term note payable for the balance d. Borrowed $5,000 cash by signing a short-term note payable. e. Paid $55,125 cash to reduce the long-term notes payable. f. Issued 3.500 shares of common stock for $20 cash per share g. Declared and paid cash dividends of $52.100 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.) 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: Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year