Question 2 Financial Acct

2. 333 ponts Problem 12-4AA Indirect Cash flows spreadsheet LO PL P2, P3, P4 Forton Company a merchandiser, recenty completod its calondar yoar 2016 operations For tho year, (1) all salos are credit salos 12) all credts to Accounts Receivablo rofect cash rocoipts fom customers,(3 ail purchases of invontory are on credit, (4) all doies to Aecounts Payable nefioct cash payments for inveniony, and (5) Oher Expenses are paid in advance and are initaly debited to Peepaid Expenses The company's income statoment and balance shoets follow Comparative Balance Sheets December 31 40000 73,000 Prepaid expenses Liabilises and Equity 54 255 114,000 102750 150500 Common stock 5 par value Padin cagital in exces of par common slock otal labitios and equty