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 Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets s 52,900 75, s00t 52,625 278,656 253,800 1,995 401,636 383,920 155,500 110,00o 68,810 1,270 (37,625) (47,000) $519,511 $446,920 Liabilities and Equity Aecounts payable Short-term notes payable Total current liabilities Long-term notes payable Total 1iabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings 55,141 $117,675 6,400 124,075 50,750 174,825 129,741 166,750152,250 39,500 1031520119,845 Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets $ 52,900 75,500 52, 625 278,656 253,800 1.995 68, 810 1,270 401,636 8235 155,500 110,000 383,920 (37,625) (47,000) $519,511 446,920 Liabilities and Equity Accounts payable Short-tern notes payable Total current liabilities Long-term notes payable Total 1iabilities Equity Common stock, $5 par value Paid-in capital in excess of par, common stock Retained earnings 55,141 $117,675 6,400 A124,075 10,600 65,741 64,000 50.750 129,741 166,750 39,500 183,520 174,825 152,250 119,845 Total liabilities and equity $519,511 $446,920 FORTEN COMPANY Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses $592,500 287,000 305,500 Depreciation expense $ 22,750 Other expenses Other gains (losses) 134,400 157,150 Loss on sale of equipment Income before taxes Income taxes expense Net income (7,125) 141,225 27,050 - $114,175 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 $7,125 (details in b). b. Sold equipment costing $52,875, with accumulated depreciation of $32,125, for $13,625 cash. c. Purchased equipment costing $98,375 by paying $34,000 cash and signing a long-term note payable for the balance. d. Borrowed $4,200 cash by signing a short-term note payable. e. Paid $51,125 cash to reduce the long-term notes payable. f. Issued 2,700 shares of common stock for $20 cash per share 9. Declared and paid cash dividends of $50,500. 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: 1111 0 Cash flows from investing activities 0 Cash flows from financing activities: K Prev 5 of 5 Next Required information Cash flows from investing activities Cash flows from financing activities: 0 Net increase (decrease) in cash Cash balance at beginning of year Cash balance at end of year 0