Problem 12-2AA Indirect Cash flows spreadsheet LO P1, P2, P3, P4 Forten Company, a merchandiser, recently completed its calendar-year 2013 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 refilect cash payments for inventory, and (5) Other Expenses are paid in advance and are nitially debited to Prepaid Expenses. The company's balance sheets and income statement follow. FORTEN COMPANY Comparative Balance Sheets December 31, 2013 and 2012 Assets Cash Accounst inventory 50.000000 77 50022.000 Prepaid expenses Total assets Liabilities and Equity Accounts payable Short-term notes payable Long-term notes payable Common stoc $5 par value Paid-in capital in excess of par 3 835 112.000 10.000 8710 common stock Total liabilities and equity FORTEN COMPANY Income Statement For Year Ended December 31, 2013 Cost of goods sold 20.000 400 oeer gas 24380 122 890 Additional Information on Year 2013 Transactions a Net income was $122.850 Accounts receivable increased. e Merchandise inventory increased & Prepaid expenses decreased t Depreciation expense was $20,000 h Purchased equipment costing $98,500 by paying $30,000 cash and (L.) by Accounts payable decreased Sold equipment costing $46,500, with accumulated depreciation of $29,375, for $11,625 cash. This yielded a loss of $5,500 signing a long-term note payable for the balance. Borrowed $3,000 cash by signing a short-term note payable. Paid $47,250 cash to reduce the long-term notes payable. ssued 2.550 shares of common stock for $20 cash per share. Declared and paid cash dividends of $52,000