ork Saved Help Save & Required information 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. FORTEN COMPANY Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 $ 66,400 82,380 292,156 1,320 442,256 146,500 (42,125) $546, 631 $ 84,500 61,625 262,800 2,115 411,040 119,000 (51,500) $478,540 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 Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity $ 64,141 13,300 77,441 59,500 136,941 $131, 175 8, 200 139, 375 59,750 199,125 184, 750 48,500 176, 440 $546, 631 161,250 0 118, 165 $478,540 FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold $637.500 296,000 RA $637,500 296,000 341,500 FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 31,750 Other expenses 143,400 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 175,150 (16,125) 150,225 39,650 $110,575 Problem 12-4AA Indirect: Cash flows spreadsheet LO P1, P2, P3, P4 Additional Information on Year 2017 Transactions a. Net income was $110,575. b. Accounts receivable increased. c. Inventory increased. d. Prepaid expenses decreased. e. Accounts payable decreased. f. Depreciation expense was $31750. 9. Sold equipment costing $79,875, with accumulated depreciation of $41,125, for $22,625 cash. This yielded a loss of $16,125 h. Purchased equipment costing $107,375 by paying $52,000 cash and (i.) by signing a long-term note payable for the balance. 1. Borrowed $5,100 cash by signing a short-term note payable. J. Paid $55,625 cash to reduce the long-term notes payable. k.issued 3,600 shares of common stock for $20 cash per share. 1. Declared and paid cash dividends of $52,300. Required: Prenard Arntete statement of cash flows in a creadsheet rennt ite nerating activities nising the indirect method FORTEN COMPANY Spreadsheet for Statement of Cash Flows For Year Ended December 31, 2017 Analysis of Changes December 31, 2016 Debit Credit December 31, 2017 $ $ 66,400 Balance sheet-debit Cash Accounts receivable Inventory Prepaid expenses Equipment 84,500 61,625 262,800 2,115 119,000 530,040 $ $ 66,400 $ Balance sheet credit Accumulated depreciation Equipment Accounts payable Short-term notes payable Long-term notes payable Common stock, $5 por value Paid-in capital in excess of par value, common stock Retained earnings 51,500 131,175 8.200 59,750 161,250 0 118,165 530,040 5 $ 0 Statement of cash flows Operating activities