Problem 16-4AA Indirect: Cash flows spreadsheet LO P1, P2. P3, P4 Forten Company, a merchandiser, recently completed its calendar-year 2015 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable refilect 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, 2015 and 2014 2014 Assets Cash Accounts receivable S49,400 S 73,000 60,000 252,000 1,500 65,810 Prepaid expenses 394,210 386,500 158,000 107,000 Total current assets Equipment (36,250) 46,000) 515,960 s447,500 Total assets Liabilities and Equity Accounts payable Short-term notes payable S48,035 S114,000 1,000 Total current liabilities Long-term notes payable 59,035 65,000 120,000 48,250 124,035 168,250 Total liabilities Equity Common stock, S5 par value Paid-in capital in excess of par, common 162,500 150.500 36,000 stock 193,425 128.750 Retained earnings 515,960 s447,500 Total liabilities and equity